What is "microinsurance"

n. (context insurance English) A type of microfinance service aimed at low-income people and communities, and typified by low premiums and coverage limits

Microinsurance is the protection of low-income people (those living on between approximately $1 and $4 per day( below $4)) against specific perils in exchange for regular premium payment proportionate to the likelihood and cost of the risks involved. This definition is exactly the same as one might use for regular insurance except for the clearly prescribed target market: low-income people. The target population typically consists of persons ignored by mainstream commercial and social insurance schemes, as well as persons who have not previously had access to appropriate insurance products.

The institutions or set of institutions implementing microinsurance are commonly referred to as a microinsurance scheme.