Insuring the Low-Income Market: Challenges and Solutions for Commercial Insurers

Autor:	Craig Churchill
Rok vydání:	2007
Předmět:	Finance Economics and Econometrics business.industry Microinsurance General insurance General Business Management and Accounting Competition (economics) Key person insurance Accounting Insurance policy Economics Auto insurance risk selection Casualty insurance business Risk management
Zdroj:	The Geneva Papers on Risk and Insurance - Issues and Practice. 32:401-412
ISSN:	1468-0440 1018-5895
DOI:	10.1057/palgrave.gpp.2510132
Popis:	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 new markets, such as the huge volume of low-income people in many countries, would be wise to move quickly to overcome key operational issues. In particular, insurers need to recognize that microinsurance is not just existing products with smaller insured sums, but rather requires a significantly different approach from conventional insurance. Key starting points include (a) improving the insurer's familiarity with the preferences and behavior of poor persons, and (b) educating the market about insurance to create low-income consumers. The Geneva Papers (2007) 32, 401–412. doi:10.1057/palgrave.gpp.2510132
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::187a9d1c50cd1e59cd57d1bf9249d326 https://doi.org/10.1057/palgrave.gpp.2510132 Zobrazit plný text záznamu Plný text ve formátu PDF