The Impact of Digital Transformation on the Development of Micro-Insurance Business in Iran (Case Study: Saman Insurance)

Low-income households are vulnerable to economic risks and shocks. Insuranceis one of the available means for the poor to protect themselves. Microinsurancecan assist low-income households to maintain a sense of financial confidenceeven in the midst of severe vulnerability by helping them manage risk. Microinsuranceis one of the fastest-growing new markets among people at the bottomof the financial pyramid. This study examined the influence of digitalization onthe growth of micro-insurance business in Iran. A survey of a commercialinsurance company was conducted to provide an understanding of the effect ofdigitalization as a driver of microinsurance growth. The methodology used inthis paper was based on statistical primary data analysis procedure that wasgathered through one structured questionnaire, and a group of ۳۸۴ insuranceexperts and agents at Saman Insurance Company participated in this study. TheResults of analysis showed that the positive effect of digital transformation onthe growth of microinsurance. The implication is that sustainable growth ofmicro insurance business among the population can be greatly enhanced byusing the benefits of digital technologies. Therefore, micro-insurance serviceproviders should consider digital transformation as a strategic action in order toexpansion of insurance coverage in low-income markets.

Keywords:

Microsurance , Digital Transformation , Insurance Market