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Bequest Motives and Determinants of Micro Life Insurance in Sri Lanka

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Author Info

  • Arun, Thankom
  • Bendig, Mirko
  • Arun, Shoba

Abstract

This paper emphasizes bequest motives by evaluating participation patterns in micro life insurance against insurance demand and supply side factors. Based on household survey data from Sri Lanka, it presents evidence on the determinants of micro life insurance participation of low-income households, using probit and tobit models. The results provide evidence that micro life insurance is positively correlated with measures of bequest motives such as the number of children or dependents. Besides, better off households are less excluded from micro life insurance markets than their poorer counterparts. The study finds a convincing need for the microinsurance sector to be more responsive to the needs of the poor, with a key role in providing financial education to understand the need for microinsurance.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 40 (2012)
Issue (Month): 8 ()
Pages: 1700-1711

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Handle: RePEc:eee:wdevel:v:40:y:2012:i:8:p:1700-1711

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Web page: http://www.elsevier.com/locate/worlddev

Related research

Keywords: financial markets; microinsurance; life insurance; South Asia; Sri Lanka;

References

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Citations

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Cited by:
  1. Biener, Christian & Eling, Martin & Schmit, Joan T., 2013. "Regulation in Microinsurance Markets: Principles, Practice, and Directions for Future Development," Working Papers on Finance 1305, University of St. Gallen, School of Finance.
  2. Ginger Turner & Farah Said & Uzma Afzal, 2014. "Microinsurance Demand After a Rare Flood Event: Evidence From a Field Experiment in Pakistan," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan, vol. 39(2), pages 201-223, April.
  3. Eling, Martin & Pradhan, Shailee & Schmit, Joan T., 2013. "The Determinants of Microinsurance Demand," Working Papers on Finance 1308, University of St. Gallen, School of Finance.

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