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Enrolment in Micro Life and Health Insurance: Evidences from Sri Lanka

Author

Listed:
  • Bendig, Mirko

    (German Institute for Global and Area Studies)

  • Arun, Thankom Gopinath

    (University of Essex)

Abstract

Microinsurance is an emerging concept protecting households from the potentially catastrophic expenditures associated with family related shocks. Therefore, this paper presents evidence on the determinants of insurance participation using probit models on household survey data from Sri Lanka, conditional on household's microfinance institution enrolment. Further, we employ multivariate probit regressions to analyse factors affecting the participation in different types of insurance. We find that the household’s experience of a family related shock is positively associated with the 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.

Suggested Citation

  • Bendig, Mirko & Arun, Thankom Gopinath, 2011. "Enrolment in Micro Life and Health Insurance: Evidences from Sri Lanka," IZA Discussion Papers 5427, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5427
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    References listed on IDEAS

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    Cited by:

    1. Awel Y. & Azomahou T.T., 2015. "Risk preference or financial literacy? Behavioural experiment on index insurance demand," MERIT Working Papers 2015-005, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. David Mark Dror, 2018. "What Factors Affect Voluntary Uptake of Community-based Health Insurance Schemes in Lowand Middle-Income Countries? A Systematic Review and Meta-Analysis," World Scientific Book Chapters, in: Financing Micro Health Insurance Theory, Methods and Evidence, chapter 14, pages 271-306, World Scientific Publishing Co. Pte. Ltd..
    3. Renuka Sane & Susan Thomas, 2020. "From Participation To Repurchase: Low Income Households And Micro‐insurance," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 87(3), pages 783-814, September.
    4. David Mark Dror, 2018. "Enrollment in Community-based Health Insurance Schemes in Rural Bihar and Uttar Pradesh, India," World Scientific Book Chapters, in: Financing Micro Health Insurance Theory, Methods and Evidence, chapter 17, pages 345-363, World Scientific Publishing Co. Pte. Ltd..
    5. Thiptaiya Sydavong & Daisaku Goto & Keisuke Kawata & Shinji Kaneko & Masaru Ichihashi, 2019. "Potential demand for voluntary community-based health insurance improvement in rural Lao People’s Democratic Republic: A randomized conjoint experiment," PLOS ONE, Public Library of Science, vol. 14(1), pages 1-21, January.
    6. Bedasa Taye Merga & Bikila Balis & Habtamu Bekele & Gelana Fekadu, 2022. "Health insurance coverage in Ethiopia: financial protection in the Era of sustainable development goals (SDGs)," Health Economics Review, Springer, vol. 12(1), pages 1-7, December.
    7. Zulekha Ndurukia & Agnes W. Njeru & Esther Waiganjo, 2017. "Factors Influencing Demand for Micro Insurance Services in the Insurance Industry in Kenya," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(7), pages 232-259, July.

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    More about this item

    Keywords

    microinsurance; household behaviour; Sri Lanka;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand

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