Microinsurance - the risks, perils and opportunities
Donors and MFIs have recently begun experimenting with the development of insurance schemes to protect clients against the risks that can lead them further into poverty. This article attempts to injecta strong note of caution into the discussions surrounding these activities. It argues that vulnerability does not translate directly into 'demand' for microinsurance and, moreover, even where markets for
microinsurance do exist, MFIs lack the skills and resources to develop or manage all but the most basic microinsurance products. As an alternative to microinsurance provided and managed directly by MFI,
this article recommends that MFIs develop partnerships with established insurers in order to provide the benefits of insurance to their clients, without taking on the insurance risk. Recognizing that not
all MFIs will accept these arguments, the final section of the article lays out a series of prerequisites, which MFIs that insist on developing their own insurance products ought to consider both to ensure
they are providing good value to clients and to increase their prospects for financial sustainability.
a strong note of caution into the discussions surrounding these activities. It argues that vulnerability does not translate directly into 'demand' for microinsurance and, moreover, even where markets for
microinsurance do exist, MFIs lack the skills and resources to develop or manage all but the most basic microinsurance products. As an alternative to microinsurance provided and managed directly by MFI,
this article recommends that MFIs develop partnerships with established insurers in order to provide the benefits of insurance to their clients, without taking on the insurance risk. Recognizing that not
all MFIs will accept these arguments, the final section of the article lays out a series of prerequisites, which MFIs that insist on developing their own insurance products ought to consider both to ensure
they are providing good value to clients and to increase their prospects for financial sustainability.
Sustainable performance of microinsurance in low-income markets
Mazambani, Last
Mutambara, Emmanuel
Risk Governance and Control: Financial Markets and Institutions, Vol. 8 (2018), Iss. 2 P.41
https://doi.org/10.22495/rgcv8i2p2 [Citations: 2]Information asymmetry and self denial in gender participation in commercial banks’ credit markets in emerging economies in Ghana
Sackey, Frank Gyimah
Amponsah, Peter Nkrumah
Journal of Small Business & Entrepreneurship, Vol. 36 (2024), Iss. 1 P.1
https://doi.org/10.1080/08276331.2020.1821530 [Citations: 2]Gender in Agriculture
Rural Women’s Access to Financial Services: Credit, Savings, and Insurance
Fletschner, Diana
Kenney, Lisa
2014
https://doi.org/10.1007/978-94-017-8616-4_8 [Citations: 62]Downscaling, Upgrading or Linking? Ways to Realize Micro-Insurance
Loewe, Markus
International Social Security Review, Vol. 59 (2006), Iss. 2 P.37
https://doi.org/10.1111/j.1468-246X.2006.00238.x [Citations: 17]Rules and regulations review on micro-takaful scheme development in Malaysia
Fikri, Sofi Mohd
Naim, Asmadi Mohamed
Maamor, Selamah
Isa, Mohamad Yazid
Ahmad, Shahrul Nizam
Shari, Wahidah
Muhamed, Nurul Aini
Qualitative Research in Financial Markets, Vol. 14 (2022), Iss. 4 P.509
https://doi.org/10.1108/QRFM-02-2021-0030 [Citations: 1]Microfinance : un état des lieux
Labie, Marc
Mondes en développement, Vol. n o 126 (2004), Iss. 2 P.9
https://doi.org/10.3917/med.126.0009 [Citations: 9]INSURANCE THEORY AND CHALLENGES FACING THE DEVELOPMENT OF MICROINSURANCE MARKETS
BRAU, JAMES C.
MERRILL, CRAIG
STAKING, KIM B.
Journal of Developmental Entrepreneurship, Vol. 16 (2011), Iss. 04 P.411
https://doi.org/10.1142/S1084946711001926 [Citations: 10]Financial decisions and risk management of low-income households in disaster-prone areas: Evidence from the portfolios of Ethiopian farmers
Viganò, Laura
Castellani, Davide
International Journal of Disaster Risk Reduction, Vol. 45 (2020), Iss. P.101475
https://doi.org/10.1016/j.ijdrr.2020.101475 [Citations: 9]Does willingness-to-pay for weather index-based insurance follow covariant shocks?
Castellani, Davide
Viganò, Laura
International Journal of Bank Marketing, Vol. 35 (2017), Iss. 3 P.516
https://doi.org/10.1108/IJBM-10-2016-0155 [Citations: 12]Jenseits Von Staat Und Markt: Mikroversicherungen Als Neues Konzept Sozialer Sicherung in Entwicklungsländern (Beyond the State and the Market: Micro-Insurance as a New Social Protection Strategy in Developing Countries)
Loewe, Markus
(2010)
https://doi.org/10.2139/ssrn.2221663 [Citations: 0]Gender inequalities in the Colombian cattle sector: an econometric analysis
Pirela Rios, Ana Milagros
Díaz Baca, Manuel Francisco
Enciso Valencia, Karen Johanna
Triana Ángel, Natalia
Burkart, Stefan
Development in Practice, Vol. 33 (2023), Iss. 4 P.400
https://doi.org/10.1080/09614524.2022.2098256 [Citations: 2]Downscaling, Upgrading or Linking? Ways to Realize Micro-Insurance
Loewe, Markus
(2006)
https://doi.org/10.2139/ssrn.2190956 [Citations: 0]- Value chain financing: evidence from Zambia on smallholder access to finance for mechanization
- Developing agro-pastoral entrepreneurship: bundling blended finance and technology
- Building frontline market facilitators' capacity: the case of the ‘Integrating Very Poor Producers into Value Chains Field Guide’
- Boosting financial inclusion through social assistance reform: evidence-based approach in selecting a payment system
- Impact of COVID-19 on livestock exports from Somalia and the Horn of Africa