2007
DOI: 10.1057/palgrave.gpp.2510132
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Insuring the Low-Income Market: Challenges and Solutions for Commercial Insurers

Abstract: In many developing countries, commercial insurers are beginning to become interested in serving the low-income market by providing microinsurance. To do so, they have to overcome both operational and regulatory obstacles. Ironically, certain regulations actually give commercial insurers an advantage in serving the low-income market, by restricting competition from specialized microinsurance companies. However, this opportunity is unlikely to last indefinitely. Commercial insurers that are keen to reach out to … Show more

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Cited by 58 publications
(74 citation statements)
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“…Since the poor are less able to cope with shocks they are less likely to take up higher yielding, albeit more risky, enterprises which might reduce poverty (Churchill, 2007). But if a farmer has crop insurance for example, he might be more inclined to take up more capital intensive cropping systems that could produce higher incomes.…”
Section: How Does Microfinance Help the Poor?mentioning
confidence: 99%
“…Since the poor are less able to cope with shocks they are less likely to take up higher yielding, albeit more risky, enterprises which might reduce poverty (Churchill, 2007). But if a farmer has crop insurance for example, he might be more inclined to take up more capital intensive cropping systems that could produce higher incomes.…”
Section: How Does Microfinance Help the Poor?mentioning
confidence: 99%
“…To overcome this issue, insurers may factor in an error margin, which must be adjusted once claims are lodged. Churchill (2007) suggested using actuarial services as a pricing adjustment for micro-insurers.…”
Section: Insurance Pricingmentioning
confidence: 99%
“…Its analysis covers different areas, from the examination of operational solutions aimed at starting and/or developing microinsurance programmes (Churchill, 2007) to the acknowledgment of the prominent role played by microinsurance in providing, along with other microfinance products and solutions, complete management solutions for different types of risks faced by individuals and companies alike (Arun and Bendig, 2010), up to the analysis of the ethical objectives pursued by such initiatives (Radermacher and Brinkmann, 2011). However, while taking into consideration a variety of aspects, including, in particular, regulatory issues (Biener et al, 2014;IAIS, 2007IAIS, , 2010IAIS, , 2012Chatterjee, 2012), demand/supply dynamics Liu et al, 2013;Arun et al, 2012;Dercon et al, 2012;De Bock and Gelade, 2012;Arun and Bendig, 2010;Cohen et al, 2005;Churchill et al, 2003;Churchill, 2002), the distribution channels of microinsurance products and the variety of contractual forms offered (Sheth, 2014;Prashad et al, 2013;Clarke and Dercon, 2009), the common thread that holds together the numerous contributions developed over the years is represented by the fact that all such microinsurance programmes were developed and implemented in developing countries; no traces are found of similar experiences in more "advanced and developed" socioeconomic systems.…”
Section: Microinsurance: Definition Literature and Regulatory Profilesmentioning
confidence: 99%