Micro-Insurance Innovations: Enhancing Financial Inclusion And Protection Against Vulnerabilities In Low-Income Communities

Abstract

Micro-insurance has emerged as a vital financial tool that protects low-income and marginalized communities against risks such as illness, accidents, crop failure, and death. As digital financial services expand through fintech platforms, micro-insurance delivery has become more scalable, efficient, and accessible. However, issues related to trust, literacy, privacy, and affordability continue to hinder adoption. This paper explores innovations in micro-insurance, emphasizing fintech integration, perceived user safety, regulatory challenges, and fraud prevention mechanisms. Using a conceptual model and empirical references, the study aims to understand the factors influencing micro-insurance uptake and outlines policy and technological interventions for greater inclusion and protection.