98. The Malagasy insurance market is small and does not cater for the local private sector.
Insurance penetration remains low, mainly because the non-life products are geared for large
corporations and not adapted to suit local micro, small and medium enterprises (MSME) business
requirements and business constraints. On the microfinance front, the offer of micro-insurance
products, especially for the rural population, is still limited. The regulatory framework for
insurance is outdated and it does not cover micro-insurance activities.