Sticking to the social mission: Microinsurance in bottom of the pyramid markets

Guided by the holistic stance of the systems theory and motivated by the ultimate mission to enhance poor people’s access to formal microinsurance, the current study innovatively looked beyond reviewing only the determinants of the demand-side of formal microinsurance development (FMID), as narrowly portrayed in the extant literature reviews of Platteau et al. (2017) and Eling et al. (2014). Reviewing and optimally managing the determinants of other sides or dimensions of FMID (i.e., the subsidy-supply-regulatory sides) are also mission-critical for the governance and advancement of formal microinsurance. One hundred sixty-two (162) articles were systematically gathered and analysed using PRISMA (the preferred reporting items for systematic reviews and meta-analyses), with evidence that literature has focused mainly on the impact of various endogenous determinants, while exogenous determinants have been largely overlooked. Amongst 52 articles short-listed, “interest rate” was the only exogenous determinant ever empirically affirmed as a variable influencing FMID. Furthermore, “insurance literacy” and “innovation” were identified as the most investigated endogenous determinants on the demand- and supply-sides of FMID, respectively. The study also evinced the dearth of research in investigating the determinants of the subsidy- and regulatory-sides of FMID. Empirical games and natural experiments were the most probing and revealing methodologies, churning out innate/relational tendencies of research respondents and more interesting evidence than initially envisaged. The geographical research focus was majorly on Asia and Africa. The paper presents more literature gaps, coupled with guides for future policy and market governance.

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Perceptions and factors influencing the willingness to pay for micro cyber-risk insurance: A logistic regression approach

Osifodunrin,

Lopes

2023

RGC

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This study aims at (re)focusing research attention on the improvement of welfare, achieving sustainable micro cyber-risk management, and the reduction of persistent insurance exclusion among retail e-payment agents (REAs) or branchless banking agents operating globally and in Lagos slums. With the active collaboration of REAs and micro-insurers, we designed and introduced the first hypothetical POS-related micro cyber-risk insurance (PRMCRI) to sustainably manage identified cyber-risks of REAs. Using a contingent valuation survey and logistic regression, this study also investigates REAs’ perceptions and factors having statistically significant effects on their willingness to pay (WTP) for PRMCRI. Our findings revealed that WTP for PRMCRI is only slightly sensitive to premium price. REAs’ perceptions of inflation, interest rates, deployment/administration of PRMCRI on mobile-technology platforms, and the effectiveness of regulatory consumer protection all positively affected their WTP for PRMCRI. Age, marital status, education, religion, and gender had no statistically significant effect on the WTP for PRMCRI. The practical value and actionable implication of the PRMCRI were further evinced, as 65.93 percent of the 455 surveyed REAs affirmed their WTP for the product. Ultimately, we hope that the introduced PRMCRI and its associated empirical/policy dynamics will champion a novel and seminal path for global micro cyber-insurance markets, future studies, and policies.

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Sticking to the social mission: Microinsurance in bottom of the pyramid markets

Cited by 3 publications

References 25 publications

Social impact models, legitimacy perceptions, and consumer responses to social ventures

Social impact models, legitimacy perceptions, and consumer responses to social ventures

Microinsurance: A PRISMA-compliant systematic review of its regulatory-, subsidy-, demand- and supply-side determinants

Perceptions and factors influencing the willingness to pay for micro cyber-risk insurance: A logistic regression approach

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