Advanced Search
MyIDEAS: Login to save this paper or follow this series

Insurance for the Poor?

Contents:

Author Info

  • Stefan Dercon (QEH), Tessa Bold, Cesar Calvo

Abstract

Uninsured risk has substantial welfare costs, not just in the short run, but also in terms of perpetuating poverty. This paper discusses the scope for extending insurance to the poor in LAC countries. It is argued that insurance provision to the poor could play an important role in a comprehensive system of protection against risk, including other ex-ante measures such as promoting credit and savings as insurance, as well as a credible overall ex-post safety net. Insurance provision is best promoted via a partner-agent model, in which a local finance institution with close links to relatively poor communities teams up with an established insurer to deliver low cost, tailored products, and possible products include life, health, property and weather insurance. An essential role of the government would be to promote insurance provision to the poor by a relevant regulatory framework favouring MFIs within a partner-agent setup, and to provide overall credibility to the overall system of social protection. The paper also argues for the involvement of local indigenous risk-sharing and finance institutions as intermediaries to maximise the ability to reach the poor and the overall welfare benefits

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www3.qeh.ox.ac.uk/RePEc/qeh/qehwps/qehwps125.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Queen Elizabeth House, University of Oxford in its series QEH Working Papers with number qehwps125.

as in new window
Length:
Date of creation:
Date of revision:
Handle: RePEc:qeh:qehwps:qehwps125

Contact details of provider:
Postal: Queen Elizabeth House 3 Mansfield Road, Oxford, OX1 3TB United Kingdom
Phone: +44 (1865) 281800
Fax: +44 (1865) 281801
Email:
Web page: http://www.qeh.ox.ac.uk/
More information through EDIRC

Related research

Keywords:

Other versions of this item:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Xavier Gine & Pamela Jakiela & Dean Karlan & Jonathan Morduch, 2006. "Microfinance Games," Working Papers, The Field Experiments Website 2102, The Field Experiments Website.
  2. Morduch, Jonathan, 1999. "Between the State and the Market: Can Informal Insurance Patch the Safety Net?," World Bank Research Observer, World Bank Group, World Bank Group, vol. 14(2), pages 187-207, August.
  3. Rosenzweig, Mark R. & Binswanger, Hans P., 1992. "Wealth, weather risk, and the composition and profitability of agricultural investments," Policy Research Working Paper Series 1055, The World Bank.
  4. Robert Holzmann & Steen Jørgensen, 2001. "Social Risk Management: A New Conceptual Framework for Social Protection, and Beyond," International Tax and Public Finance, Springer, Springer, vol. 8(4), pages 529-556, August.
  5. Jonathan Morduch, 1995. "Income Smoothing and Consumption Smoothing," Harvard Institute of Economic Research Working Papers 1727, Harvard - Institute of Economic Research.
  6. Gaviria, Alejandro & Pages, Carmen, 2002. "Patterns of crime victimization in Latin American cities," Journal of Development Economics, Elsevier, Elsevier, vol. 67(1), pages 181-203, February.
  7. Alejandro Gaviria & Carmen Pagés-Serra, 1999. "Patterns of Crime Victimization in Latin America," Research Department Publications, Inter-American Development Bank, Research Department 4186, Inter-American Development Bank, Research Department.
  8. Braverman, Avishay & Guasch, J. Luis, 1986. "Rural credit markets and institutions in developing countries: Lessons for policy analysis from practice and modern theory," World Development, Elsevier, Elsevier, vol. 14(10-11), pages 1253-1267.
  9. Skees, Jerry & Varangis, Panos & Larson, Donald & Siegel, Paul, 2002. "Can Financial Markets be Tapped to Help Poor People Cope with Weather Risks?," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  10. Ravallion, Martin, 2001. "On the urbanization of poverty," Policy Research Working Paper Series 2586, The World Bank.
  11. Stefan Dercon, 1993. "Risk, crop choice and savings: evidence from Tanzania," Economics Series Working Papers WPS/1993-02, University of Oxford, Department of Economics.
  12. Dercon, Stefan & Hoddinott, John, 2003. "Health, Shocks and Poverty Persistence," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  13. Roberto Pizarro, 2001. "La vulnerabilidad social y sus desafíos: una mirada desde América Latina," DOCUMENTOS DE INVESTIGACION 003101, CEPAL NACIONES UNIDAS.
  14. Timothy Besley, 1995. "Nonmarket Institutions for Credit and Risk Sharing in Low-Income Countries," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 9(3), pages 115-127, Summer.
  15. Garance Genicot & Debraj Ray, 2003. "Group Formation in Risk--Sharing Arrangements," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 70(1), pages 87-113, January.
  16. Moser, Caroline O. N., 1998. "The asset vulnerability framework: Reassessing urban poverty reduction strategies," World Development, Elsevier, Elsevier, vol. 26(1), pages 1-19, January.
  17. Stefan Dercon, 2000. "Income risk, coping strategies and safety nets," CSAE Working Paper Series 2000-26, Centre for the Study of African Economies, University of Oxford.
  18. Ron, Aviva, 1999. "NGOs in community health insurance schemes: examples from Guatemala and the Philippines," Social Science & Medicine, Elsevier, Elsevier, vol. 48(7), pages 939-950, April.
  19. Amartya K. Sen, 1966. "Peasants and Dualism with or without Surplus Labor," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 74, pages 425.
  20. Conning, Jonathan & Kevane, Michael, 2002. "Why isn't there more Financial Intermediation in Developing Countries?," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  21. Stefan Dercon & Tessa Bold, 2007. "Insurance for the Poor?," Economics Series Working Papers GPRG-WPS-073, University of Oxford, Department of Economics.
  22. Coate, Stephen & Ravallion, Martin, 1993. "Reciprocity without commitment : Characterization and performance of informal insurance arrangements," Journal of Development Economics, Elsevier, Elsevier, vol. 40(1), pages 1-24, February.
  23. Banerjee, Abhijit V & Newman, Andrew F, 1993. "Occupational Choice and the Process of Development," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 101(2), pages 274-98, April.
  24. Sadoulet, Loic, 2002. "Incorporating Insurance Provisions in Microfinance Contracts: Learning from Visa®?," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  25. Robert M. Townsend, 1995. "Consumption Insurance: An Evaluation of Risk-Bearing Systems in Low-Income Economies," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 9(3), pages 83-102, Summer.
  26. Jacoby, Hanan G, 1994. "Borrowing Constraints and Progress through School: Evidence from Peru," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 151-60, February.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Lena Giesbert & Susan Steiner, 2014. "Client perceptions of the value of microinsurance: evidence from southern Ghana," Brooks World Poverty Institute Working Paper Series, BWPI, The University of Manchester 19214, BWPI, The University of Manchester.
  2. Stefan Dercon & Tessa Bold, 2007. "Insurance for the Poor?," Economics Series Working Papers GPRG-WPS-073, University of Oxford, Department of Economics.
  3. César P. Bouillon & Luis Tejerina, 2006. "Do We Know What Works?: A Systematic Review of Impact Evaluations of Social Programs in Latin America and the Caribbean," IDB Publications 23598, Inter-American Development Bank.
  4. Alejandro de la Fuente, 2007. "Private and Public Responses to Climate Shocks," Human Development Occasional Papers (1992-2007), Human Development Report Office (HDRO), United Nations Development Programme (UNDP) HDOCPA-2007-22, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
  5. 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.
  6. Ralf Radermacher & Johannes Brinkmann, 2011. "Insurance for the Poor?," Journal of Business Ethics, Springer, Springer, vol. 103(1), pages 63-76, April.
  7. Berhanu, Wassie, 2011. "Recurrent shocks, poverty traps and the degradation of pastoralists’ social capital in southern Ethiopia," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, African Association of Agricultural Economists, vol. 6(1), March.
  8. Lena Giesbert, 2012. "Subjective Risk and Participation in Micro Life Insurance in Ghana," GIGA Working Paper Series 210, GIGA German Institute of Global and Area Studies.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:qeh:qehwps:qehwps125. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rachel Crawford).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.