MICRO-INSURANCE

Usually Poor afce 2 types of risks:
Idiosyncratic - specific to the Household
Covariate= Common- Draught , epidemic


Defn :
Protection of low-income households against specific perils in exchange of premium payments proportionate to the likelihood of& cost of the risk involved.
Key roles to be played by Insurers, Regulators & Govt.

Growth of Micro-Insurance


MICRO-INSURANCE MODELS

PARTNER-AGENT

FULL SERVICE

COMMUNITY BASED

PROVIDER




DELIVERY MECHANISMS


BENEFITS MECHANISMS OP. COST
cOVARIATE
Risks Mgt Insurance,credit,Mutual Ins. Moral Hazard
Risks Mgt Self-Ins Adverse selection,
Idiosyncratic ,Enforceability



MICRO-INSURANCE MODEL



AFFORDABLE COST-EFFECTIVE SUSTAINABLE


Consultative Group Report



UNDP Report



Recommendations in respect of
Life
Health
Crop
Livestock
Asset



Conclusion
Greater economic & psychological security