This paper presents evidence on the determinants of insurance participation using probit models on household survey data from Sri Lanka, conditional on household's MFI enrolment. The authors employ multivariate probit regressions to analyse factors affecting the participation in different types of insurance. The authors find that the household's experience of a family related shock is positively associated with participation in micro health insurance schemes under study. There is strong evidence that microinsurance has not yet succeeded in proportionately reaching the most vulnerable households. Notably, education of the household head is a strong determinant of microinsurance participation.
Institute for the Study of Labor