Illness or injury, death of a family member, man-made calamities and natural disasters have a devastating effect on low-income households’ cash flow, liquidity, and earning capacities and this, on household welfare. The growing demand for microinsurance (insurance services geared for low-income households) is a response to continuing risks that threaten poor households’ welfare. This is a recent phenomenon. This Policy Notes draws the policymakers’ attention to this emerging phenomenon and explains the need for an effective regulatory and supervision framework for microinsurance.
Philippine Institute for Development Studies