The Determinants of Microinsurance Demand
Journal
Geneva Papers on Risk and Insurance: Issues and Practice
ISSN
1018-5895
ISSN-Digital
2311-0112
Type
journal article
Date Issued
2014-04-11
Author(s)
Abstract
The purpose of this article is to structure the extant knowledge on the determinants of microinsurance demand in a manner that achieves several outcomes. First is to offer a specific economic structure to the review through use of Outreville's insurance demand framework. Second is to identify key questions that arise out of structuring the material in this way. In particular, we attempt to clarify the critical open questions in microinsurance demand through use of Outreville's framework. Third, through comparison with literature on traditional insurance demand, we identify opportunities to understand not only the microinsurance market better, but also the traditional market. To achieve these outcomes, we review the academic literature on microinsurance demand published between 2000 and early 2014 and compare these results with evidence in the literature regarding traditional insurance markets. The review identifies 12 key factors affecting microinsurance demand, and further highlights that research focused on the role of contract performance (including basis risk and quality), trust, financial literacy and informal risk-sharing mechanisms may be most fruitful in expanding microinsurance markets.
Language
English
Keywords
Microinsurance
insurance
demand
enrolment
participation
take-up
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Palgrave Macmillan Ltd.
Publisher place
Hampshire UK
Volume
39
Number
2
Start page
224
End page
263
Pages
40
Subject(s)
Division(s)
Eprints ID
223551