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Perceptions of (Micro)Insurance in Southern Ghana: The Role of Information and Peer Effects

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  • Giesbert, Lena
  • Steiner, Susan

Abstract

This article investigates the understandings and perceptions of (micro)insurance among lowincome people in southern Ghana, using evidence from four focus group discussions. It analyzes how the focus group participants think about various types of insurance - among them a micro life insurance product - and how their negative and/or positive evaluations have come about. The evidence indicates that (micro)insurance is mostly positively perceived by the participants of the focus group discussions. However, it is also found that many people's image of insurance is based on incomplete (and sometimes erroneous) information, or even on intuition. In addition, the experiences or opinions of peers turn out to be critical in shaping an individual's perception of insurance. These two factors potentially have a contagious effect, which can lead to unreasonably positive or overly negative ideas about (micro )insurance. Such ideas, in turn, can become detrimental to the further distribution of microinsurance.

Suggested Citation

  • Giesbert, Lena & Steiner, Susan, 2011. "Perceptions of (Micro)Insurance in Southern Ghana: The Role of Information and Peer Effects," GIGA Working Papers 183, GIGA German Institute of Global and Area Studies.
    • Handle: RePEc:zbw:gigawp:183
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    References listed on IDEAS

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    Cited by:

    1. Mrs. Amrutha Varshini V & Prof. B.H.Suresh, 2013. "A Study on Performance of Life Micro Insurance in Mysore City," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 4(3), pages 40-45, September.
    2. Giesbert, Lena, 2012. "Subjective Risk and Participation in Micro Life Insurance in Ghana," GIGA Working Papers 210, GIGA German Institute of Global and Area Studies.
    3. Tao Li & Lihong Chen & Xiaoxu Li & Sha Li & Haibing Chen & Hao Ji, 2021. "The Impact of Cost-of-Production Insurance on Input Expense of Fruit Growing in Ecologically Vulnerable Areas: Evidence from Shaanxi Province of China," Sustainability, MDPI, vol. 13(21), pages 1-14, November.
    4. Amos Gitau Njuguna & Abigael Arunga, 2013. "Risk Management Practices: A Survey of Micro-Insurance Service Providers in Kenya," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 4(1), pages 132-150, January.

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    More about this item

    Keywords

    microinsurance; risk management; perception; Ghana; focus groups;
    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

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