Microinsurance – between the social and the economic dimension of risk management

Abstract

Risks are inevitable, objective category faced by all people and all business entities and they are widespread in all areas of human existence, regardless of the level of the human community development. Therefore, various strategies for risk management are developed, among which the insurance have one of the central positions. But, the demand for insurance services is largely determined by the legal framework regulating the insurance market (compulsory and optional insurance), the level of awareness for the need of buying insurance services (because it is usually about types of risks that the frequency of occurrence is not extremely expressed), and the level of the living standard, or the availability of insurance services for socially vulnerable categories of the population in a national economy. Uninsured risks, regardless of the type of risk in question, especially badly affect poorer categories of society which cannot cope with the catastrophic losses from negative shocks.The paper refers to the elaboration of the need for developing microinsurance services by comparative analysis of the coverage of these services in the countries in the world, analysis of the socially vulnerable strata of the population in Macedonia that could potentially be involved in the demand of these services and the microinsurance models that could be applied in countries that have not still developed this form of insurance.

Evidence-Based Policy Evaluation: Focus on Micro-Insurance Operational Policy in Nigeria

“…Thus, micro-insurance products or schemes are designed to suite the low income market in the cost, terms, coverage and the mechanism of delivery. Thus, all micro-insurance products are designed to ensures simplicity, understanding, accessibility, value and efficiency (SUAVE) (Karadjova and Dicevska, 2018).…”

Evidence-Based Policy Evaluation: Focus on Micro-Insurance Operational Policy in Nigeria

“…Thus, micro-insurance products or schemes are designed to suite the low income market in the cost, terms, coverage and the mechanism of delivery. Thus, all micro-insurance products are designed to ensures simplicity, understanding, accessibility, value and efficiency (SUAVE) (Karadjova and Dicevska, 2018).…”

“…Designing micro-insurance products this way ensures the simplicity of policies, conditions, procedure and marketing of the scheme. The product design specification reduces ambiguity in the pooling method while also guaranteeing easy access to the products with respect to the cost, premium payment method as well as the claims settlement capacity of the micro-insurance providers (Karadjova and Dicevska, 2018).…”

Evidence-Based Policy Evaluation: Focus on Micro-Insurance Operational Policy in Nigeria

“…Thus, micro-insurance products or schemes are designed to suite the low income market in the cost, terms, coverage and the mechanism of delivery. Thus, all micro-insurance products are designed to ensures simplicity, understanding, accessibility, value and efficiency (SUAVE) (Karadjova and Dicevska, 2018).…”

“…Designing micro-insurance products this way ensures the simplicity of policies, conditions, procedure and marketing of the scheme. The product design specification reduces ambiguity in the pooling method while also guaranteeing easy access to the products with respect to the cost, premium payment method as well as the claims settlement capacity of the micro-insurance providers (Karadjova and Dicevska, 2018).…”