Country Briefing Note: Guatemala (NM)

The growth of Guatemala’s microinsurance market has been favoured by government initiatives in response to the country's high exposure to climate risks and the need to strengthen its health and pension system. It is also seen as a way to help close the protection gap for women and indigenous populations in the country. Guatemala is currently updating its  National Financial Inclusion Strategy (ENIF)  which, among other things, offered an action plan for insurance until 2023. The Insurance Technical Council, which is led by the Superintendency of Banks (SIB), is responsible for implementing th     is action plan and has become a key vehicle for promoting insurance in the country.

• The inclusive insurance sector in Guatemala has great potential. It is estimated that only around 14% of low- and middle-income Guatemalans have some form of insurance. 

• To take advantage of this opportunity, industry players must work together to offer greater value to low-income consumers through innovative, scalable and sustainable solutions. 

• The actions developed by  the SIB  and the  Guatemalan Association of Insurance Companies (AGIS)  are fundamental to help both supply and demand sides overcome the barriers to access and distribution of microinsurance.

• The ENIF supports insurance penetration through its objective of strengthening both financial education and the regulatory framework for microinsurance, as well as promoting innovation across the insurance industry. These measures are seen to help increase the demand and supply of affordable and accessible insurance for vulnerable or underserved segments of the population.