The Role of Data in Inclusive Insurance

Data is being leveraged by private sector actors to offer "inclusive insurance" for low-income and other excluded segments, such as rural small-holder farmers and gig workers. There is a large coverage gap, with 3.8 billion uninsured or underinsured people in emerging markets alone. Data is at the core of any insurance offering, empowering insurers to understand the unique needs and risk profiles of underserved segments and helping to create better risk assessment, pricing, and distribution models for inclusive insurance offerings. 

CGAP's research discusses five ways various private sector actors use data to offer “inclusive insurance”. In particular, data is used to design new products, inform pricing strategies, acquire and retain customers, improve customer experience, and improve claims management and fraud detection.