INFLUENCE OF MICROINSURANCE ACCESS ON POVERTY ALLEVIATION
DOI:
https://doi.org/10.47672/ijpid.1143Keywords:
Microinsurance, Poverty Alleviation, Financial ConfidenceAbstract
Purpose: Micro-insurance as a financial scheme is proportionate to the probability and expense of risk in order to cover low-income companies from particular risks in return for daily premium payments. Microinsurance can assist the low-income household's mange risks hence allowing them to maintain a sense of financial confidence even in the face of significant vulnerability. The purpose of this study was to evaluate the influence of microinsurance access on poverty alleviation.
Methodology: A desk-study method was adopted.
Findings: Micro-insurance was found to be a powerful tool in protecting the poor and their assets from negative external shocks, compensating the effects of covariate shocks (e.g., natural disasters), they address gender-specific vulnerabilities, and freeing up household capital for investment in small enterprises.
Unique contribution of theory, practice and policy: Microinsurance should be embraced by the government to enhance poverty alleviation in developing countries. The insurers should constantly provide information about their products so that the poor can become knowledgeable on the same. Aggressive awareness campaigns about the importance of microinsurance could be spearheaded by the industry demonstrating the benefits of the service.
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