Perceptions of (Micro)Insurance in Southern Ghana: The Role of Information and Peer Effects
AbstractThis article investigates the understandings and perceptions of (micro)insurance among low-income 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.
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Bibliographic InfoPaper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 1194.
Length: 33 p.
Date of creation: 2012
Date of revision:
Microinsurance; risk management; perception; Ghana; focus groups;
Other versions of this item:
- Lena Giesbert and Susan Steiner, 2011. "Perceptions of (Micro)Insurance in Southern Ghana: The Role of Information and Peer Effects," GIGA Working Paper Series 183, GIGA German Institute of Global and Area Studies.
- G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
This paper has been announced in the following NEP Reports:
- NEP-AFR-2012-03-14 (Africa)
- NEP-ALL-2012-03-14 (All new papers)
- NEP-CFN-2012-03-14 (Corporate Finance)
- NEP-IAS-2012-03-14 (Insurance Economics)
- NEP-MFD-2012-03-14 (Microfinance)
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