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Inclusive insurance sector: An innovativebusiness model for micro-insurance delivery in Sri Lanka


  • Shirantha Heenkenda

    (Department of Economics, University of Sri Jayewardenepura, Nugegoda, Sri Lanka)


The core objective of this study is to explore the feasibility of farmers` organizations (FOs) as a vehicle for micro-insurance delivery of the paddy crop, grown by small-scale (peasant) farmers in Sri Lanka. Factor Analysis was used to elicit the group dynamic and the capacity of FOs as a stakeholder in the insurance supply chain. The results show that the farmers` organizations are most widespread and are a very close institutional setup for paddy farmers because FOs are capable of handling financial activities with transparency, and have healthy financial habits and as a result farmers participate actively in farmers` organization activities. This study provided clear policy insights for the policy makers to implement an innovative business model for micro-insurance delivery to be incorporated with the FO model in Sri Lanka. Furthermore, it was revealed that the postal network can act as a financial intermediary in circumstances to assist the FOs in financial activities, where the commercial insurers do not have an outlet or branch networks in their target area. Therefore, in order to develop the links between the farmers and the insurers, it seems viable that the public-private partnership model be used for micro-insurance supply to paddy farmers in Sri Lanka.?

Suggested Citation

  • Shirantha Heenkenda, 2016. "Inclusive insurance sector: An innovativebusiness model for micro-insurance delivery in Sri Lanka," Journal of Asian Business Strategy, Asian Economic and Social Society, vol. 6(1), pages 1-12, January.
  • Handle: RePEc:asi:joabsj:2016:p:1-12

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    References listed on IDEAS

    1. Olivier Mahul & Charles J. Stutley, 2010. "Government Support to Agricultural Insurance : Challenges and Options for Developing Countries," World Bank Publications, The World Bank, number 2432, December.
    2. Paul Mosley, 2009. "Assessing the success of microinsurance programmes in meeting the insurance needs of the poor," Working Papers 84, United Nations, Department of Economics and Social Affairs.
    3. Craig Churchill, 2007. "Insuring the Low-Income Market: Challenges and Solutions for Commercial Insurers," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 32(3), pages 401-412, July.
    4. Wijerathna, Deeptha & Varma, Samyuktha, 2006. "A farmers’ company for better price: The case of Chandrika Wewa Farmer Company, Sri Lanka," Conference Papers h039279, International Water Management Institute.
    5. Heenkenda, Shirantha, 2011. "Prospective Demand for an Index-Based Microinsurance in Sri Lanka," MPRA Paper 54420, University Library of Munich, Germany, revised Jul 2011.
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