According to the definition of the Microinsurance Centre,
microinsurance must be SUAVE:

pack_suave

Looking at numbers, the potential for microinsurance is striking: insurance penetration stands at less than 1% across all Middle Eastern markets. The three main obstacles for reaching this underserved population are:

1. DISTRIBUTION

Finding a low-cost distribution model, widely accessible to the majority of the target population: traditional insurance channels – such as agents or brokers – are not suitable due to their lack of scale or reach and high cost.

2. PREMIUM COLLECTION

Collecting premium is another key issue to overcome: as less than 20% of the population in the Middle East and Northern Africa has a bank account, the number of customers eligible for traditional insurance is capped at similar levels too.

3. POLICY SERVICING & ADMINISTRATION

Effective customer service, policy administration and claims management are key differentiators for insurers in the value chain: however, the currently prevailing manual processes developed by insurance companies are not scalable for the large number of potential mobile microinsurance customers.

 
Millions of people in MENA
% of total insurance premiums vs. GDP
% of mobile SIM cards vs. total population