Economics at your fingertips  

The Impact of Microinsurance on Household Asset Accumulation in Ghana: An Asset Index Approach

Joseph Oscar Akotey and Charles Adjasi
Additional contact information
Joseph Oscar Akotey: University of Stellenbosch Business School, P.O. Box 610, Bellville 7535, Cape Town, South Africa

The Geneva Papers on Risk and Insurance - Issues and Practice, 2014, vol. 39, issue 2, 304-321

Abstract: This paper examines the link between microinsurance services and households’ asset accumulation in Ghana. Using FINSCOPE data from the nation-wide household surveys conducted by FinMark Trust, we created a household asset index using the multiple correspondence analysis approach. We employed three methods: Heckman sample selection, instrumental variable and treatment effects models to estimate the impact of microinsurance on household asset accumulation. These models control for the problem of endogeneity treatment effects and self-selection bias associated with the usage of microinsurance services. The findings show that microinsurance has a positive welfare impact in terms of household asset accumulation. This suggests that microinsurance prevents asset pawning and liquidation of essential household assets at “give away” prices. By absorbing the risk of low-income households, insurance equips them to cope effectively with risk, empowers them to escape poverty and sustains the welfare gains achieved.

Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link) Link to full text PDF (application/pdf) Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from

Access Statistics for this article

The Geneva Papers on Risk and Insurance - Issues and Practice is currently edited by Christophe Courbage

More articles in The Geneva Papers on Risk and Insurance - Issues and Practice from Palgrave Macmillan, The Geneva Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

Page updated 2023-06-15
Handle: RePEc:pal:gpprii:v:39:y:2014:i:2:p:304-321