Why people do not buy microinsurance and what can we do about it


Vulnerability to risk, a constant factor in the lives of the poor, is a cause of persistent poverty. Microinsurance offers one approach to mitigating risk, yet demand is disappointingly low. This low demand for microinsurance is a complex issue, as many factors influence a household’s decision to buy microinsurance. This paper, published by the ILO's Microinsurance Innovation Facility offers a review of more than 30 quantitative and qualitative studies that reveal the most important determinants of demand when it comes to selling microinsurance: trust, liquidity constraints, the quality of the client value proposition and behavioural constraints. Conducted as a partnership between ILO’s Microinsurance Facility and the European Development Research Network (EUDN), the paper aims to help practitioners understand how these determinants affect demand. By blending academic findings with practical examples from the field, it presents solutions that practitioners can implement to improve demand.






Michal Matul, Aparna Dalal, Ombeline De Bock, Wouler Gelade


Microinsurance Innovation Facility

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