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Beninese and Ethiopian Informal Insurance Groups: A Comparative Analysis

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  • Philippe LeMay-Boucher

Abstract

Informal insurance groups have been created in many poor regions in response to a risky environment typical of developing countries. Drawing on original datasets from Benin and Ethiopia, this article provides empirical evidence describing the various forms these indigenous institutions take. While their principal role has been to provide indemnities for funeral expenses, they also cater for a wide range of shocks. The article finds striking resemblances in group structures and types of coverage offered, suggesting that households for whom the costs of formal insurance contracts are prohibitive tend to deal with risk in a comparable way. Dissimilarities may reflect different local household structures or the extent to which these groups are advertised and known to the public. Copyright (c) The Author 2009. Journal compilation (c) 2009 Overseas Development Institute..

Suggested Citation

  • Philippe LeMay-Boucher, 2009. "Beninese and Ethiopian Informal Insurance Groups: A Comparative Analysis," Development Policy Review, Overseas Development Institute, vol. 27(3), pages 333-347, May.
  • Handle: RePEc:bla:devpol:v:27:y:2009:i:3:p:333-347
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    1. repec:dau:papers:123456789/13208 is not listed on IDEAS
    2. Najat El Mekkaoui de Freitas & Hillary Johnson, 2012. "Formal and Informal Social Protection in Iraq," Working Papers 739, Economic Research Forum, revised 2012.

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