Essays on Microinsurance in Fragile
States
Supervision: Prof. P. Verwimp
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Jesse d’Anjou MA MSc
PhD student Development Economics – Microinsurance
TAMNEAC Fellow
Université Libre de Bruxelles
Solvay Brussels School of Economics and Management
Centre Emile Bernheim
Campus du Solbosch
Avenue F.D. Roosevelt 50 - CP144
B-1050 Brussels – Belgium
T (NL): +31 (0)6 209 495 43
T (BE): +32 (0)4 846 648 64
E: [email protected]
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- Introduction
- Project
- Paper Topics
- Methodology/Data
- Relevance
- Discussion Points
- Short Bibliography
Introduction
• 4 innovative features
– Largely unexplored topic(s)
– Dynamics between insurance and other
formal and informal financial coping
strategies
– Fragile states
– Novel theoretical frameworks
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Project
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Cooperation with Dr. S. Steiner and L. Giesbert
Ghana
Central Region, Eastern Region, Volta Region
N=1030 (households)
Voluntary life insurance (plus some health care/accident coverage)
– Anidaso policy by GLICO (survey inclusive to other insurance policies)
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Cross-sectional dataset (2009)
Stratified random sample (treatment group, control group, extra control
group)
Relation to other formal and informal risk-coping strategies
Two papers (demand and perceptions)
– Giesbert, L., Steiner, S. and Bendig, M. (2011). ‘Participation in micro life
insurance and the use of other finacial services in Ghana’, The journal of risk and
Insurance, Vol. 78, No. 1, pp. 7-35.
– Giesbert, L. and Steiner, S. (2011). ‘Perceptions of (Micro)Insurance in Southern
Ghana: the role of information and peer effects’,GIGA working papers, Vol. 183,
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Project
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Second wave
Follow-up on every household
Old questionnaire plus new components
Panel data
– Casual effects (time component effects)
– Unobserved fixed component
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Paper Topics
• Within project
– Mechanisms explaining renewal rates (similarities with
participation studies)
– Impact analysis (measured on local strategies)
– Different perceptions and changing behavior between decision to
enroll and renew (interaction between informal/formal financial
services)
• Outside scope project
– Claims ratios (Moral hazard/adverse selection or
underutilization)
– Demand study in post-conflict area
• Specific with ex-combatants
• Non-specific in area with experience of conflict
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– Innovation (RCT towards take-up of mobile phone technology)
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Paper topics
• Renewal rates (Sinha et al., 2007; Werner,
2009; Ito and Kono, 2010)
– Identify the (severity of) issue empirically
– Identify mechanisms explaining renewal rates
• Dimensions of trust
• Collective decision making
– Analyze dynamics between the different
coping mechanisms over time
– Intrahousehold decision-making
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Paper Topics
• Innovative aspects
– Follow-up of demand study
• Follow consistency of decision-making
– Dynamics between insurance and other
formal and informal financial services
– Building on recent findings of demand studies
• Roles of trust/expertise (Not only towards peers)
– Perhaps gender differences within decisionmaking
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Methodology/Data
• Following lines of first wave sample
• Extend questionnaire
– Old section (to enrich cross-sectional data to
panel data)
– New section (more relevant questions with
paper topics in mind)
• Perhaps other suggestions?
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Relevance
• Challenge posed by both practioners as
academics
– Threat to stability and sustainability
• Existing members (smaller insurance pool)
• Other and new members
• Further look into interplay insurance with
other financial services (clues to
combination products)
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Discussion Points
• Other possible topics, or which topic more in
depth (focus)?
• Further look into intra-households insurance
decision making?
• Design of experiment concerning renewal?
• Which explaining variables to test and how to
identify?
• Critical remarks towards:
– Topics
– Methodology
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Short Bibliography
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Armendáriz, B. and Morduch, J. (2005). The economics of microfinance, Cambridge, MIT Press.
Chankova, S., Sulzbach, S. and Diop, F. (2008). Impact of mutual health organizations: evidence from West
Africa’, Health policy and planning, Vol. 23, No. 4, pp. 264-276.
Churchill, C. (ed) (2006). Protecting the poor: a microinsurance compendium, Geneva, ILO.
Clarke, D. and G. Kalani. (2011). ‘Microinsurance decisions: evidence from Ethiopia’, Mimeo, University of Oxford,
pp. 1-25.
Cohen, M. and Sebstad, J. (2005). ‘Reducing vulnerability: the demand for microinsurance’, Journal of
International Development, Vol. 17, No. 3, pp. 397-474.
Dercon, S., Gunning, J. and Zeitlin, A. (2011). ‘The Demand for Insurance under Limited Credibility: Evidence from
Kenya’, Oxford University Press, forthcoming.
Dong, H., De Allegri, M., Gnawali, D., Souares, A. and Sauerborn, R. (2009). ‘Drop-out analysis of communitybased health Insurance membership at Nouna, Brukina Faso’, Health policy, Vol. 92, pp. 174-179.
Giesbert, L., Steiner, S. and Bendig, M. (2011). ‘Participation in micro life insurance and the use of other finacial
services in Ghana’, The journal of risk and Insurance, Vol. 78, No. 1, pp. 7-35.
Giné, X., Townsend, R. and Vickery, J. (2008). ‘Patterns of rainfall insurance participation in rural India’, World
Bank economic review, Vol. 22, No. 3, pp. 593-566.
Ito, S. and Kono, H. (2010). ‘Why is the take-up of microinsurance so low? Evidence
from a health insurance scheme in India’, Developing Economies, Vol. 48, No. 1, pp. 74-101.
Morsink, K. and Geurts, P. (2011). ‘Informal trust building factors and the demand for microinsurance’, Paper
prepared for the 7th annual international microinsurance conference,
Rio de Janeiro,pp. 1-27.
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Short Bibliography
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Morsink, K., Geurts, P. and Kooijman-van Dijk, A. (2011). ‘Impact of microinsurance on vulnerability of low income
households in the Philippines: the case of typhoon re-housing insurance’, Paper prepared for the Second
European conference on microfinance, Groningen, pp. 1-37.
Sinha, T., Kent Ranson, M., Patel, F., and Mills, A. (2007).’Why have the members gone? Explanations for
dropout from a community-based insurance scheme’, Journal of International development, Vol. 19, pp. 653-665.
Vanderpuye-Orgle, J. and Barrett, C.B. (2009). ‘Risk management and social visibility
in Ghana’, African Development Review, Vol. 21, No. 1, pp. 5-35.
Werner, W.J. (2009). ‘Micro-insurance in Bangladesh: Risk protection for the poor?’, Journal of health, population,
and nutrition, Vol. 27, No. 4, pp. 563-573.
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