The Role of Microinsurance as a Social Protection
Abstract: All households in
developing countries, whether better or
worse off, are exposed to a variety of risks, such as
illness, disability, death, unemployment, crop failure, natural catastrophes,
or crime. Low-income households, however, are
less able to
prevent and mitigate
risks than others;
and in the
case of shocks, they are less
able to cope with the consequences. Aim of this paper is to understand the
nature of micro-insurance products and their relation to social protection
systems and instruments.
In order to be workable, solutions will have to address the very
practical issues that have arisen repeatedly in discussions of micro-insurance.
The first is the need
for reinsurance, the
second is having
data on which
to base premiums, and
the third is the ability
to cut the
costs of dealing
with many small transactions.
Author: Hendrisman Rahim,
Doddy Syachroerodly, Arizal E.R.
Journal Code: jpmanajemengg130076
