The number of people covered by microinsurance has increased more than six times in five years, according to a survey by the International Labour Organisation and the Munich Re Foundation.

Nearly 500 million people are covered, up from 78 million in 2007.

At least 33 of the 50 largest global insurers offer microinsurance, compared with only seven in 2005.

The largest market share is in Asia, where microinsurance protects poor people against risks such as accidents, illnesses, family deaths, natural disasters and property losses. Insurance premium payments are tailored to their preferences and capacity to pay.

About 60% of the people covered by microinsurance live in India, with a further 20% in China. Latin America accounts for 15% and Africa 5%.

The report says Asia is in front because of its large and dense populations, interest from public and private insurers, proper distribution channels and active government support.

“Providing microinsurance effectively requires the involvement of many stakeholders from both the public and private sector who are not used to working together and who often have very different objectives and operating systems,” Munich Re Foundation Vice Chairman Dirk Reinhard said.

“What matters now is the process of getting key stakeholders to work together effectively.”

Innovations in the microinsurance field include distributing new products through diverse channels such as banks, retailers or mobile phone companies. Many commercial insurers have entered the low-income market, creating capacity for scale.

“Since 2008 we have seen numerous innovations emerging to overcome the challenges of providing viable insurance services to more low-income people,” Microinsurance Network Chairman Craig Churchill said.

“Efforts now should focus on increasing effectiveness so insurance products can successfully reduce their vulnerability.”

Commercial forms of insurance are also growing strongly in Asia due to the expanding middle classes. Life premiums are tipped to grow by 4.4% this year and non-life by 6%, according to Swiss Re Chief Economist Clarence Wong.