Toward an efficient and sustainable Microinsurance market: The regulatory perspective
AbstractWhile both microcredit and microinsurance products in the developing world have essentially emerged in a regulatory vacuum, the general consensus appears to be that self-regulation may have thus far served the global microcredit industry adequately. The same premise is likely to be false when it comes to microinsurance since diffusion of the essence of insurance among the poor has proven non-trivial. The regulatory framework therefore has to target multiple goals such as to foster market innovations (in terms of product design and the institutional delivery mechanism), to protect the policy holder (i.e., achieving “cost efficiency” and “sustainability”) and at the same time to ensure that insurance services remain inclusive and compatible with the needs of the poor. Accomplishing these goals within a single regulatory framework requires a fine balance. This paper deliberates on how to craft a set of regulatory statutes that would be relevant for the microinsurance industry in consonance with these goals.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 35816.
Date of creation: Apr 2010
Date of revision:
Microinsurance; poverty & vulnerability; prudential regulation; reporting standards;
Find related papers by JEL classification:
- G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
- G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
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- Xavier Giné & Robert Townsend & James Vickery, 2008.
"Patterns of Rainfall Insurance Participation in Rural India,"
World Bank Economic Review,
World Bank Group, vol. 22(3), pages 539-566, October.
- Xavier Giné & Robert Townsend & James Vickery, 2007. "Patterns of rainfall insurance participation in rural India," Staff Reports 302, Federal Reserve Bank of New York.
- Gine, Xavier & Townsend, Robert & Vickery, James, 2007. "Patternsof rainfall insurance participation in rural India," Policy Research Working Paper Series 4408, The World Bank.
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