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Effect of financial literacy on willingness to pay for micro-insurance by commercial market business operators in Ghana

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  • Yeboah, Augustine Kwadwo
  • Obeng, Camara Kwasi

Abstract

This study investigated the effect of financial literacy on willingness to pay for micro-insurance among informal commercial market business operators in Ghana. Heckman’s Two-Step Estimation Technique is used to examine data on 612 informal commercial market business operators from selected major urban market centres in Ghana. The results indicate that financial literacy increases the amount willing to pay for micro-insurance. Other determinants of willingness to pay for micro-insurance include marital status, dependents, savings, trust, premium payment mode and income. The study recommends that microfinance institutions should strengthen financial education to increase the uptake of micro-insurance.

Suggested Citation

  • Yeboah, Augustine Kwadwo & Obeng, Camara Kwasi, 2016. "Effect of financial literacy on willingness to pay for micro-insurance by commercial market business operators in Ghana," MPRA Paper 70135, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:70135
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    References listed on IDEAS

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    More about this item

    Keywords

    Financial literacy; Willingness to pay; Microfinance; Micro-insurance; commercial market business operators; Ghana;
    All these keywords.

    JEL classification:

    • G0 - Financial Economics - - General

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