Topics  |  The Insurance Industry and the Underbanked

Insurance plays a critical role in asset building. Not only does it provide protection against financial losses caused by death or disasters but it can also help build net worth and protect or transfer wealth. Yet many people, particularly those with low or moderate incomes, including new immigrants and minority households, either have no insurance or have too little to protect themselves against loss. To determine how to address insurance needs among these populations, CFSI reviewed trends in the insurance industry, interviewed industry experts and identified innovative practices. This paper describes potential innovations in product design, marketing and distribution. One strategy seems especially promising: to develop products that combine asset-building and insurance features. This could help consumers understand the value of insurance to their long-term prosperity while giving insurers and other financial services providers entry into new markets.