Microinsurance is a new market segment serving low-income customers, providing affordable risk protection at low premiums. Insurers face challenges in establishing a foothold in this market, including determining the most appropriate operating model, offering products that meet the needs of low-income consumers, and distributing products in previously unserved markets. However, successful insurers have the opportunity to tap into a vast new source of profit. Microcredit has helped the poor rise above the poverty line, but they still face a higher risk of adverse events such as illness, accidental death, and natural disasters. Microinsurance aims to protect these individuals and help them stay above the poverty line.