Enrolment in Micro Life and Health Insurance: Evidences from Sri Lanka

29 Pages Posted: 18 Jan 2011

See all articles by Mirko Bendig

Mirko Bendig

German Institute of Global and Area Studies (GIGA)

Thankom Gopinath Arun

University of Central Lancashire

Abstract

Microinsurance is an emerging concept protecting households from the potentially catastrophic expenditures associated with family related shocks. Therefore, this paper presents evidence on the determinants of insurance participation using probit models on household survey data from Sri Lanka, conditional on household's microfinance institution enrolment. Further, we employ multivariate probit regressions to analyse factors affecting the participation in different types of insurance. We find that the household's experience of a family related shock is positively associated with the participation in micro health insurance schemes under study. There is strong evidence that microinsurance has not yet succeeded in proportionately reaching the most vulnerable households. Notably, education of the household head is a strong determinant of microinsurance participation.

Keywords: microinsurance, household behaviour, Sri Lanka

JEL Classification: G22, O16, R22

Suggested Citation

Bendig, Mirko and Arun, Thankom Gopinath, Enrolment in Micro Life and Health Insurance: Evidences from Sri Lanka. IZA Discussion Paper No. 5427. Available at SSRN: https://ssrn.com/abstract=1741615

Mirko Bendig (Contact Author)

German Institute of Global and Area Studies (GIGA) ( email )

Neuer Jungfernstieg 21
Hamburg, DE D-20354
Germany

Thankom Gopinath Arun

University of Central Lancashire ( email )

United Kingdom

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