Global Actuarial Initiative (GAIN) Pricing Toolkits

The microinsurance market stands out as a critical yet underserved segment of the broad insurance landscape. Despite this sector’s growing maturity and burgeoning market potential, the microinsurance market has seen only limited actuarial and technical expertise being leveraged. This work addresses that limitation directly by illustrating an actuarial approach to pricing microinsurance products. This user guide—along with the self-contained pricing model—is intended to provide education on applying actuarial principles to pricing products in the microinsurance market. This pricing model was developed under the guidance of the Global Actuarial Initiative (GAIN) partnership between Milliman and the United Nations Development Programme (UNDP) to build actuarial expertise in developing countries. Our hope is that this work will support innovative solutions for managing the risks faced by low-income populations around the world.

The International Actuarial Association (IAA) did not participate in the development of this product. The IAA is sharing this Toolkit on the basis that it is a a valuable contribution to actuarial literature and practice in topical areas. Please refer to the Notice and Access Agreement within each Toolkit.