Insurance for the Poor: The Case of Informal Insurance Groups in Benin

This paper studies indigenous insurance groups using evidence from urban areas in Benin. Many of these informal institutions co-exist within neighbourhood-distance. They are based on well-defined rules and regulations, offering premium-based insurance for funeral expenses, as well as other forms of insurance and credit to cope with hardships. We provide first a description of these groups. Then we investigate, with the help of an original dataset, which individual characteristics are significant in explaining both the probability to join such groups and the choice of insurance coverage.