Microinsurance Research Articles

MICRO INSURANCE: A TOOL FOR DEVELOPMENT OF RURAL INDIA AND THE CHALLENGES FOR ITS IMPLEMENTATION

Micro-insurance is originated for the protection of poor and low income people,with feasible insurance schemes to help them to survive and recover from common risks. The main aim of micro insurance is not only to promote business perspective but also to the rural development of our country and the protection of poor people. India is developing country hence 70% of the population is still rural, very poor, poor health and low literacy rate. Micro insurance is an essential part of the financial sector and it assists the people to diversify their risks.It is essential to develop insurance awareness among the people in the each and every corner of our country particularly remote area.The present study focussed the importance of micro insurance for the development of rural people.This paper also discuss about the micro insurance products and the role of various public and private micro insurance agents for the upliftment of rural and poor people.

The Demand of Microinsurance: a Case of Health Insurance

The Demand of Microinsurance: a Case of Health Insurance

The Role of Micro Insurance in India

The Role of Micro Insurance in India

Sustaining Micro Insurance through Innovation

Sustaining Micro Insurance through Innovation

PROMOTION OF INVESTMENT IN MICRO INSURANCE POLICY A STUDY WITH REFERENCE TO KOLLAM DISTRICT KERALA

The development of micro insurance in India not only depends on the product scheme and delivery system but also on generating the appropriate sub structure and motivating the performance of insurance agents. It is essential for programming the banks as significant delivery network for micro insurance and the banks could drive the process for the growth of the insurance in the rural. Currently, various NGOs and MFIs are also providing micro insurance policies apart from private and public insurance companies, whatever be the delivery system of micro insurance contact with potential clients or existing clients is necessary for the easy marketing of the policy and this is possible only by strengthening the existing agency force. The present paper examines the ways and means for improving investment in micro insurance policy with reference to Kollam district, Kerala State.

Effets de la microassurance récolte sur la performance des petits producteurs de maïs au Burkina Faso : une étude exploratoire dans le village de Dandé

À l’aide d’une approche par les pairs, l’article examine les impacts sur la performance des agriculteurs bénéficiaires d'un programme de microassurance "assurance récolte au Sahel (ARS)", mis en place au Burkina Faso. La comparaison de deux groupes de cultivateurs de maïs, assurés et non-assurés, montre que l’ARS améliore l'accès au microcrédit, aux intrants et augmente la surface de maïs, stimulant ainsi la production. Cependant, le rendement est légèrement supérieur pour les non-assurés. Classification JEL : G21, G22, I1, O130, Q1

Review of Progress and Potential of Micro Insurance in India

Review of Progress and Potential of Micro Insurance in India

Validating a Theoretical Model to Measure the Business Success of Microinsurance (MI) in South Africa

The objective of the present study was to validate a theoretical model to measure business success of Microinsurance in South Africa. The empirical process of validation is based on literature research. The model was tested amongst 400 employees from four insurance companies offering Microinsurance (MI). 261 questionnaires were filled (a response rate of 62.25%). The validation process aimed to validate the variables that measure each of the business success influences; assess the sampling adequacy, test the applicability of the data for multivariate statistical analysis; determine the importance of each of the MI's business success influences; and test the reliability of each of the business success influences. All these objectives were successfully met. This culminated in the final result, namely the model to measure business success of MI and was proven statistically to be a valid and reliable model that can be used to measure the business success of MI in SA. The research is of value to the Government, Microfinance institutions, Microinsurers, Insurers, NGOs, academics and researchers.

A Perspective of Microinsurance (MI): The Case of South Africa

Microinsurance (MI), an important economic roleplayer, is investigated in and placed in perspective to the insurance industry in South African. This is achieved by researching the factors that cause serious deprivation in the provision of MI. Typical restrictive factors are financial literacy, out-of-reach of customers, and low commission for brokers. Resultantly, the need for stakeholder analysis presents itself to better understand and address these challenges which should enable an up-and-running MI environment in South Africa. Historically, the insurance industry focussed on financial products and services that for the middle to high income groups. The low-income households have thus been largely excluded from insurance benefits although the consequences of setbacks are extreme for the low income group. As a result, the market most vulnerable to financial shocks are the least protected. This situation has drastically changed during the last few years. The LOASA and the Insurance companies reached consensus with the Financial Sector Charter of South Africa to launch tailor-made products and services for the low-income people. South Africa is still facing an “Insurance Gap”, approximately 61% of the low-income households which are not insured represent a huge opportunity for the industry. Therefore, the introduction of the Zimele products classified as MI products in 2007 was a good launch to target the “niche” of those uninsured market. DOI: 10.5901/mjss.2014.v5n23p63

What is Microinsurance?

The definition of microinsurance can be split into its two aspects: Firstly, what constitutes insurance and secondly, what is micro in microinsurance. This chapter offers an explanation of both aspects.

A Theoretical Model to Measure the Business Success of Micro-insurance (MI) in South Africa

The paper develops a theoretical model to measure business success of micro-insurance in South Africa. This is achieved by researching historical MI models from the literature and to identify from these models the constructs that influence business success related to Micro-insurance. An exploratory research perspective examined a vast range of survey-based business success influences and then fifteen more important variables were identified. The variables were further examined and a number of questions to measure each variable were formulated from the literature review. This has led to the final result, namely the theoretical model to measure business success. The research is valuable to the Government, Microfinance institutions, Microinsurers, Insur ers, NGOs, academics and other researchers among others. The stakeholders will be able to apply the model to determine which specific influences are the most important for their products and services, while also identifying where their business success fails.

Measuring the Business Success of Micro-insurance in South Africa

This article reports on the business success of the microinsurance (MI) industry in South Africa. This was achieved by applying a theoretical model to measure the MI's business success. More specifically, the theoretical model identified the influencing factors determining business success and their respective measuring criteria. These influencing factors and criteria were empirically validated and subjected to reliability analysis. T he invalid criteria were eliminated and the unreliable influencing factors omitted in order to validate the theoretical model. The final validated model and its inherent structured questionnaire were employed as measuring tool to determi ne the business success of MI in South Africa. The questionnaire comprised a demographical profile and the measuring criteria pertaining to the influencing factors of business success on a 5-point Likert scale. A total of 261 responses were analysed from a random sample of 400 insurance agents. The results showed that none of the infl uencing factors portrayed general satisfaction on business success and all of the mean values were below 60%. Therefore, the conclusion is drawn that business success is not satisfactory in the MI industry. Catastrophic failure at price, as a core element of the marketing mix, shows that business success in this market is difficult to secure and that astute marketing and business strategies would have to be employed for insurance to become a product of choice for the low-end market. All of the influencing factors need managerial intervention.

Takaful: An Islamic insurance instrument

The Takaful concept evolved from individual common interest during the industrial era of the early 1900’s. Only eighty million of the world’s 2.5 billion poor are currently covered by some form of micro-insurance. Only 3% of the poor in India and China are insured, and only 0.3% of the poor in Africa are insured. In 23 of the 100 poorest countries in the world, there is currently no identified micro-insurance activity. The majority of the population is in the low-income bracket. On top of that, society’s awareness regarding the importance of insurance is rather low. In this paper, it will be stressed that efforts still need to be directed towards educating the public on Islamic insurance to appreciate the protection aspects that insurance can offer. Conventional insurance involves the elements of uncertainty, gambling, and interest, all of which are unacceptable under Islamic law. There existed anxiety among Muslims regarding the inconsistency of conventional banking and insurance in compliance with Islamic laws. This allowed the creation of a new industry, takaful, which offered risk protection and savings products to the world’s 1.6 billion Muslims. One of the greatest challenges facing the takaful industry is the misconception that it is exclusively for Muslims.Takaful products have attracted even non-Muslim communities, despite the obvious religious and cultural differences. Nonetheless, the interest shown by non-Muslims and the support of Muslims is not enough to promote the awareness and the growth oftakaful and what it has to offer. It is this lack of awareness that presents one of the greatest challenges to the development and growth of the national and global industry. Key words: Takaful, insurance, kafal, conventional insurance, gambling, interest.

Factor Analysis of Micro Insurance Development Challenges in Rural Areas

Micro insurance is a financial arrangement to protect low-income people against specific perils in exchange for regular premium payments proportionate to the likelihood and cost of the risk involved. Organizations might face a number of barriers to develop micro insurance especially in rural areas; therefore it is necessary to identify such challenges. This study investigates agricultural experts’ perception about the challenges of micro insurance development. The factor analysis showed that the challenges can be classified into 3 latent factors namely: educational challenges, cultural-social challenges and legal-institutional challenges. 39.1% of total common variances are explained by these 3 factors. Key words: Micro Insurance, challenges, rural areas.

Downscaling, Upgrading or Linking? Ways to Realize Micro-Insurance

Downscaling, Upgrading or Linking? Ways to Realize Micro-Insurance