The Experts below are selected from a list of 1413 Experts worldwide ranked by ideXlab platform
David M. Dror - One of the best experts on this subject based on the ideXlab platform.
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Health Microinsurance Models
2020Co-Authors: Alexander S. Preker, David M. DrorAbstract:The objective of this chapter is to describe the features and challenges of the primary health Microinsurance delivery models and the factors contributing to the success of community-based health insurance (CBHI). The models are differentiated based on two dimensions: the main purpose of operating and the responsibility for the risk of losses. The chapter also emphasizes the factors that render CBHI as the best-suited model to deliver Microinsurance.
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The Framework for Implementation of Microinsurance
2020Co-Authors: Alexander S. Preker, David M. DrorAbstract:Catalyzing the demand has been a constant concern in the Microinsurance space wherever enrollment has been voluntary and contributory. Here we learn about three significant effects of implementing health Microinsurance (shifting from dormant demand to solvent demand; creating the framework at the community level for financial inclusion through insurance education, and establishing the financial institution at the community level that enables reshaping the mindset from dependent to dependable) that lie at the core of the implementation process.
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MIS in Microinsurance
2020Co-Authors: Alexander S. Preker, David M. DrorAbstract:When a Microinsurance scheme is up and running, it generates both financial and non-financial data which help to perform analysis. Thus, data are not merely a by-product but have an intrinsic value. The way to capitalize on such data is to record and process them continuously, generate reports on demand, and assist the scheme managers in making informed decisions based on specific indicators. Such data processing requires a Management Information System (MIS). In this chapter, we understand the functioning of MIS in a Microinsurance setup.
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Pricing of Microinsurance or Rate Making
2020Co-Authors: Alexander S. Preker, David M. DrorAbstract:In commercial insurance, it is common practice to charge each individual the premium that reflects that person’s estimated contribution to the risk pool. However, in Microinsurance, community rating is applied, whereby every participant pays the same premium, irrespective of age, gender, health status, or claims history. This methodology is challenging in terms of pricing the package and maintaining an equilibrium between high-risk and low-risk individuals. The reality in Microinsurance practice is that the price determines the package, rather than the other way around. This chapter provides a detailed guideline on context-dependent pricing.
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Guest Editorial: Special Issue on Microinsurance
2016Co-Authors: David M. DrorAbstract:The Geneva Papers on Risk and Insurance — Issues and Practice is publishing its first special issue on Microinsurance. This is a bold and timely step; bold, as we still grapple with the basic question whether Microinsurance is simply a low-cost variant of traditional insurance, or whether it is an altogether different paradigm, founded on other hypotheses and operated with dissimilar business processes. And timely, because Microinsurance now features in many professional conferences on insurance, where hundreds of participants are eager to gain and share knowledge on this topic. The Geneva Papers, it is hoped, can add to the theoretical analysis or empirical evidence on Microinsurance through the publication of five articles in this special issue, and disseminate some novel insights.
Christian Biener - One of the best experts on this subject based on the ideXlab platform.
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Regulation in Microinsurance Markets: Principles, Practice, and Directions for Future Development
World Development, 2014Co-Authors: Christian Biener, Martin Eling, Joan T SchmitAbstract:Regulation of any market can either promote or impede its development, thus affecting social welfare. In this paper, we are concerned with the impact of regulation in Microinsurance markets. We evaluate existing and potential regulatory mechanisms with regard to its underlying economic rationale, and offer recommendations intended to enhance support and minimize barriers for Microinsurance market development. Specifically, we recommend avoiding incentives for regulatory arbitrage; responding to the characteristics of the Microinsurance market, including licensing, capital, reinsurance, and distribution systems; enhancing the market through financial literacy initiatives; and providing support in the form of data collection and management training.
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Pricing in Microinsurance Markets
World Development, 2013Co-Authors: Christian BienerAbstract:Summary Microinsurance markets have exhibited strong growth rates in recent years. Great parts of the industry are, however, challenged by fundamental issues of providing insurance products, one of the most significant of which is pricing risk. In this paper, we provide a nontechnical analysis of insurance pricing problems and a review of the set of opportunities that can address some of the specific pricing constraints in Microinsurance markets. A key contribution of this paper is the investigation of conventional techniques as potential solutions for improving the pricing of insurance risk in Microinsurance markets.
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Insurability in Microinsurance Markets: An Analysis of Problems and Potential Solutions
The Geneva Papers on Risk and Insurance - Issues and Practice, 2012Co-Authors: Christian Biener, Martin ElingAbstract:This paper provides a comprehensive analysis of the insurability of risks in Microinsurance markets. Our aim is to enhance the understanding of impediments to and facilitators of Microinsurance from an economic perspective and outline potential solutions. The motivation for conducting this analysis arises from two important aspects. (1) Despite strong growth of Microinsurance markets in recent years, more than 90 per cent of the poor population in developing countries have limited or no access to insurance. (2) Industry practitioners frequently highlight problems in the insurability of risks that hinder the development of Microinsurance. We review 131 papers and find that the most severe problems stem from insufficient resources for risk evaluation, small size of insurance groups, information asymmetries and the size of the insurance premium. On the basis of the analysis, we discuss a number of potential solutions such as, for example, a cooperative Microinsurance architecture.
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The Performance of Microinsurance Programs: A Data Envelopment Analysis
Journal of Risk and Insurance, 2011Co-Authors: Christian Biener, Martin ElingAbstract:The purpose of this research is to measure the performance of Microinsurance programs using data envelopment analysis and to derive implications for the viable provision of Microinsurance products. This is a worthwhile exercise given the significant limitations of the existing performance measures used in the Microinsurance industry. A single and simple to interpret performance measure can overcome these limitations and provide a sophisticated tool for performance measurement within a multidimensional framework. Moreover, this technique can incorporate the important social function that microinsurers fulfill and provide powerful managerial implications. We illustrate the capabilities of data envelopment analysis using a sample of 20 Microinsurance programs and recent innovations from the efficiency literature, such as the bootstrapping of efficiency scores and a truncated regression analysis of efficiency determinants.
Ralf Radermacher - One of the best experts on this subject based on the ideXlab platform.
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Insurance for the Poor?
Journal of Business Ethics, 2011Co-Authors: Ralf Radermacher, Johannes BrinkmannAbstract:Microinsurance is the provision of insurance services to the poor, usually in developing countries. One of the key criteria of poverty is vulnerability even to minor events. In such cases, even micro coverage can make a major difference, yet still be funded by an affordable contribution by the insured. Like any kind of insurance, Microinsurance can cover different risks to life, health, farming, property among other things. Our paper sketches how one could address and develop Microinsurance business ethics. First, we introduce Microinsurance to the business ethics community and business ethics to the Microinsurance community. Our draft of Microinsurance ethics is then developed from two angles: as a holistic understanding of ideals and possible ethical conflicts in key stakeholder relationships and by distinguishing eight challenges when targeting the poor and when marketing Microinsurance. As an open ending, the article suggests a three-stage action research design focusing on how Microinsurance could (and should) internalize ethics, respecting rather than neglecting national- and local-cultural conditions.
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Integrated Risk Management in Microinsurance
2009Co-Authors: Ralf Radermacher, Jacquiline Roberts Singh, Siddharth SrivastavaAbstract:Microinsurance can be a tool in Disaster Risk Reduction/Management - but only if it survives the disaster itself. Reinsurance can help Microinsurance to survive disasters. However, reinsurers regard the Microinsurance entity a risky client and are hesitant to engage in this market. An Integrated Risk Management approach can help a microinsurer to become a better client for reinsurance and thus to obtain reinsurance cheaper - or obtain it at all. However, Integrated Risk Management for Microinsurance is insufficiently conceptualized so far. This paper takes a first step by providing examples of risks faced by Microinsurance schemes and risk management techniques available to tackle them. It presents the Integrated Risk Management cycle and screens the business process of Microinsurance for risks.
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Institutional Options for Delivering Health Microinsurance
2007Co-Authors: Ralf Radermacher, Iddo DrorAbstract:Health insurance entails the transfer of health risks in return for a premium payable in advance. This succinct description suggests that the arrangement entails flows of funds and information in two directions: from the client to the insurer and from the insurer to the client. The party with the most control of these flows of funds and information can influence the business process to its advantage. This notion that one party would seek an advantage over another implies that conflicts of interest can occur between insurers and insured. But is this the case in health Microinsurance provision? And if so, does the institutional option (model) for delivering health Microinsurance have an influence on such conflicts of interests and efficiency in the provision of insurance? This chapter looks at these questions by offering a basic typology of the different business process options identified in health Microinsurance provision. Such a typology will help identify conflicts of interest and remedy inefficiencies in the smooth bi-directional flow of funds and information. This chapter first summarizes the main types of health Microinsurance providers and then analyses their relative effectiveness in meeting the needs of the low-income market over the long term.
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Karuna Trust, Karnataka, India - Good and bad practices in Microinsurance
2005Co-Authors: Ralf Radermacher, Olga Van Putten-rademaker, Verena Müller, Natasha Wig, David M. DrorAbstract:This paper was commissioned by the “Good and Bad Practices in Microinsurance” project. Managed by the ILO’s Social Finance Programme for the CGAP Working Group on Microinsurance, this project is jointly funded by SIDA, DFID, GTZ and the ILO.
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Yeshasvini Trust, Karnataka, India - Good and bad practices in Microinsurance
2005Co-Authors: Ralf Radermacher, Olga Van Putten-rademaker, Verena Müller, Natasha Wig, David M. DrorAbstract:This paper was commissioned by the “Good and Bad Practices in Microinsurance” project. Managed by the ILO’s Social Finance Programme for the CGAP Working Group on Microinsurance, this project is jointly funded by SIDA, DFID, GTZ and the ILO.
Martin Eling - One of the best experts on this subject based on the ideXlab platform.
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The Determinants of Microinsurance Demand
The Geneva Papers on Risk and Insurance - Issues and Practice, 2014Co-Authors: Martin Eling, Shailee Pradhan, Joan T SchmitAbstract: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.
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Regulation in Microinsurance Markets: Principles, Practice, and Directions for Future Development
World Development, 2014Co-Authors: Christian Biener, Martin Eling, Joan T SchmitAbstract:Regulation of any market can either promote or impede its development, thus affecting social welfare. In this paper, we are concerned with the impact of regulation in Microinsurance markets. We evaluate existing and potential regulatory mechanisms with regard to its underlying economic rationale, and offer recommendations intended to enhance support and minimize barriers for Microinsurance market development. Specifically, we recommend avoiding incentives for regulatory arbitrage; responding to the characteristics of the Microinsurance market, including licensing, capital, reinsurance, and distribution systems; enhancing the market through financial literacy initiatives; and providing support in the form of data collection and management training.
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The Determinants of Microinsurance Demand
SSRN Electronic Journal, 2013Co-Authors: Martin Eling, Shailee Pradhan, Joan T SchmitAbstract:The purpose of this article is to structure the extant knowledge on the determinants of Microinsurance demand and to discuss unresolved questions that deserve future research. To achieve this outcome, we review the academic literature on Microinsurance demand published between 2000 and early 2013. The review identifies 12 key factors affecting Microinsurance demand: price, wealth, risk aversion, non-performance risk, trust and peer effects, religion, financial literacy, informal risk sharing, quality of service, risk exposure, age, and gender. We discuss the evidence of how each of these 12 factors influences demand, both within the Microinsurance and the traditional insurance markets. A comparison with traditional markets shows an unexpected (negative) effect of risk aversion on Microinsurance demand, with trust perhaps being the intervening factor. Other relevant results include the importance of liquidity (and/or access to credit), informal risk sharing, and peer effects on the decision to buy Microinsurance. The influence of trust on insurance take-up and the unanticipated results for risk aversion are fertile areas for future research.
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Insurability in Microinsurance Markets: An Analysis of Problems and Potential Solutions
The Geneva Papers on Risk and Insurance - Issues and Practice, 2012Co-Authors: Christian Biener, Martin ElingAbstract:This paper provides a comprehensive analysis of the insurability of risks in Microinsurance markets. Our aim is to enhance the understanding of impediments to and facilitators of Microinsurance from an economic perspective and outline potential solutions. The motivation for conducting this analysis arises from two important aspects. (1) Despite strong growth of Microinsurance markets in recent years, more than 90 per cent of the poor population in developing countries have limited or no access to insurance. (2) Industry practitioners frequently highlight problems in the insurability of risks that hinder the development of Microinsurance. We review 131 papers and find that the most severe problems stem from insufficient resources for risk evaluation, small size of insurance groups, information asymmetries and the size of the insurance premium. On the basis of the analysis, we discuss a number of potential solutions such as, for example, a cooperative Microinsurance architecture.
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The Performance of Microinsurance Programs: A Data Envelopment Analysis
Journal of Risk and Insurance, 2011Co-Authors: Christian Biener, Martin ElingAbstract:The purpose of this research is to measure the performance of Microinsurance programs using data envelopment analysis and to derive implications for the viable provision of Microinsurance products. This is a worthwhile exercise given the significant limitations of the existing performance measures used in the Microinsurance industry. A single and simple to interpret performance measure can overcome these limitations and provide a sophisticated tool for performance measurement within a multidimensional framework. Moreover, this technique can incorporate the important social function that microinsurers fulfill and provide powerful managerial implications. We illustrate the capabilities of data envelopment analysis using a sample of 20 Microinsurance programs and recent innovations from the efficiency literature, such as the bootstrapping of efficiency scores and a truncated regression analysis of efficiency determinants.
Joseph Oscar Akotey - One of the best experts on this subject based on the ideXlab platform.
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Microinsurance And Consumption Smoothing Among Low-Income Households In Ghana
The Journal of Developing Areas, 2018Co-Authors: Joseph Oscar Akotey, Charles K.d. AdjasiAbstract:The literature indicates that the usage of meals reduction to cope with risk does not improve upon household's welfare. So in this study we inquire whether Microinsurance is a better alternative for coping with shocks. In particular we ask: is Microinsurance a viable option for smoothing consumption instead of reduction in the number of meals consumed per day? The Microinsurance products in this study were not randomised. Households have the free will to either buy or reject these products. The option to choose creates room for self-selection and endogeneity bias which can produce inconsistent estimates. So we employed three models to resolve these biases: Heckman sample selection, treatment effect model and instrumental variable modelling. Each of these models has a unique advantage in correcting selection and endogeneity bias. Data on low-income households comprising the insured and the uninsured was extracted from the 2010 FINSCOPE survey for the empirical estimation. The Heckman model shows that insured households are 20.7% less likely to forgo daily meals when faced with risks. The treatment effects model shows a similar result of 19.3%. The impact is even larger (i.e. 22.3%) if unobserved factors are accounted for through the instrumental variable technique. The summary of the three estimations is that Microinsurance improves insured households' consumption smoothing and food security by eliminating under-nutrition and malnourishing actions such as reduction in food intake. This is a strong indication that Microinsurance is a good option for managing consumption smoothing among low-income households. The value of Microinsurance is not just the transfer of risk but most essentially the empowerment of low-income households to adopt effective consumption smoothing actions which are critical for healthy living and human capital growth. This has implications for financial sector policies in developing countries. In particular policies that promote access to Microinsurance and its integration into governments' welfare programs will have a tremendous impact on developing economies' policies of reducing poverty through human development.
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Does Microcredit Increase Household Welfare in the Absence of Microinsurance
World Development, 2016Co-Authors: Joseph Oscar Akotey, Charles K.d. AdjasiAbstract:Summary This study answers the question: Does a combination of microcredit and Microinsurance improve the wellbeing of low-income households? We examine this challenge through Heckman sample selection, instrumental variable and treatment effect models. The findings indicate that households using microcredit in combination with Microinsurance derive significant gains in terms of welfare improvement. Microcredit may be good but its benefit to the poor is enhanced and sustained if the poverty trapping risks are covered with Microinsurance. To this extent, combining microcredit with Microinsurance will empower the poor to make a sustainable exit from poverty.
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The impact of Microinsurance on household welfare in Ghana
2015Co-Authors: Joseph Oscar AkoteyAbstract:Microinsurance services have been operating in Ghana for the last decade, but the question whether they have enhanced the welfare of low-income households, mostly in the informal sector, is largely unresearched. In particular the study asks: does Microinsurance improve the welfare of households through asset retention, consumption smoothing and inequality reduction? This question has been examined through the use of the 2010 FINSCOPE survey which contains indepth information on 3 642 households across the rural and urban settings of the country. In order to control for selection bias and endogeneity bias, Heckman sample selection, instrumental variable and treatment effect models were employed for the evaluation. The results of the assessment have been compiled into four empirical essays. The first essay investigates the impact of Microinsurance on household asset accumulation. The findings show that Microinsurance has a positive welfare impact in terms of household asset accumulation. This suggests that Microinsurance prevents asset pawning and liquidation of essential household assets at ‘give away’ prices. By absorbing the risk of low-income households, insurance equips them to cope effectively with risk, empowers them to escape poverty and sustains the welfare gains achieved. The second essay examines the impact of Microinsurance on consumption smoothing. It delves into the capacity of Microinsurance to enable households to avoid costly risk-coping methods which are detrimental to health and well-being. The results reveal that insured households are less likely to reduce the daily intake of meals, which is an indication that Microinsurance is a better option for managing consumption smoothing among low-income households. The third essay investigates the effect of Microinsurance on households’ asset inequality. The findings indicate that the asset inequality of insured households is less than that of uninsured households. Insured female-headed households have much lower asset inequality than maleheaded households, but uninsured female-headed households are worse off than both uninsured and insured male-headed households. The regional trend reveals that developmental gaps impede the capacity of Microinsurance to bridge the asset inequality gap. The fourth essay asks: Does microcredit improve the well-being of low-income households in the absence of Microinsurance? The findings show a weak influence of microcredit on household welfare. However households using microcredit in combination with Microinsurance derive significant gains in terms of welfare improvement. Microcredit may be good, but its real benefits to the poor is best realised if the poverty trapping risks are covered with Microinsurance. To this extent, combining microcredit with Microinsurance will empower the poor to make a sustainable Stellenbosch University https://scholar.sun.ac.za
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Exploring the Effect of Microinsurance on Asset Inequality among Households in Ghana
The Journal of Developing Areas, 2015Co-Authors: Joseph Oscar Akotey, Charles K.d. AdjasiAbstract:We employed the Gini method to investigate the effect of Microinsurance on asset inequality among households in Ghana. The findings indicate that the asset inequality of insured households is less than that of uninsured households. Also, insured female-headed households have much lower asset inequality than male-headed households, but uninsured female-headed households are worse off than both uninsured and insured male-headed households. The regional trend reveals that developmental gaps impede the capacity of Microinsurance to bridge the asset inequality gap. The findings of this study require policy directions to encourage more low-income households to take up Microinsurance schemes.