The demand for micro insurance in Ghana
Oscar Joseph Akotey,
Kofi A. Osei and
Journal of Risk Finance, 2011, vol. 12, issue 3, 182-194
Purpose - The purpose of this paper is to identify the factors which influence the demand for micro-insurance services among the informal sector workers of Ghana who are quite vulnerable to various risks in the economy. Design/methodology/approach - The study adopts a quantitative technique based on primary data sampled randomly from 100 informal sector workers from four major market centers in Accra, Ghana. The probit regression model was used for the empirical investigation. Findings - Empirical investigation using the probit model indicates that premium flexibility, income level and nodal agency are significant determinants of micro-insurance demand. Insurance knowledge, expectation (trust) and marital status were also found to have positive and significant impact on the demand for micro insurance. Interestingly, the empirical analysis shows that formal education is not a significant determinant; rather one's level of insurance knowledge has a positive and significant impact on micro-insurance demand. Social implications - Insurers must consider the nature of the cash-flow of informal workers in the design of premiums. The government must integrate micro insurance into its poverty reduction program. Originality/value - The micro-insurance market is very new and unresearched in Ghana. This foundational study is, therefore, very original and a most valuable guide to commercial insurance companies which want to venture into this huge untapped opportunity in the Ghanaian informal sector.
Keywords: Ghana; Insurance services; Developing countries; Poverty (search for similar items in EconPapers)
References: Add references at CitEc
Citations View citations in EconPapers (4) Track citations by RSS feed
Downloads: (external link)
http://www.emeraldinsight.com/10.1108/152659411111 ... RePEc&WT.mc_id=RePEc (text/html)
Access to full text is restricted to subscribers
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eme:jrfpps:v:12:y:2011:i:3:p:182-194
Ordering information: This journal article can be ordered from
Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
http://emeraldgroupp ... /journals.htm?id=jrf
Access Statistics for this article
Journal of Risk Finance is currently edited by Bonnie Buchanan
More articles in Journal of Risk Finance from Emerald Group Publishing
Series data maintained by Virginia Chapman ().