Insurance for Small Businesses

Addressing the challenges of distribution, product design and minimal insurance culture

Insurance for small businesses represents a promising market for insurers. Nonetheless, it poses significant challenges related to product design, distribution and insurance culture and demand. This paper is dedicated to analyzing these challenges, but it also looks into ways to overcoming them by looking at emerging good practices of providers.

The first part of the paper explains the importance of insurance in helping small businesses manage risks. It examines the main risks that they face and identifies which of them could be covered with insurance. For each of these risks, possible insurance products are outlined.

The second part of the paper asks how to make insurance for small businesses a reality. It examines the challenges that insurance providers face, clustered into three groups: distribution, product design and minimal insurance culture. The paper then provides emerging good practices to help providers overcome challenges in each cluster.

This paper is intended for a wide range of audiences, including:

  • Governments;
  • Donors;
  • Insurance providers;
  • International organizations.

About this Publication

By Merry, A.