Microinsurance in Ghana: investigating the impact of Outreville's four-factor framework and firm and product characteristics on adoption

Emmanuel Owusu Oppong (), Yu Baorong and Bruvine Orchidée Mazonga Mfoutou
Additional contact information
Emmanuel Owusu Oppong: University of International Business and Economics
Yu Baorong: University of International Business and Economics
Bruvine Orchidée Mazonga Mfoutou: University of International Business and Economics

The Geneva Papers on Risk and Insurance - Issues and Practice, 2024, vol. 49, issue 3, No 2, 447 pages

Abstract: Abstract Microinsurance is a risk management tool for low-income households. However, its adoption is low in Ghana. This study examines the determinants of microinsurance adoption in Ghana, analysing primary data from 1453 households across six key markets and three regions. We also gathered secondary data from 14 microinsurance firms and 47 microinsurance products between 2017 and 2021. We estimate the critical factors influencing microinsurance uptake using robust probit, fixed-effects and panel-corrected standard error models. Our findings indicate that income levels, trust in financial institutions and participation in community risk management groups and the national health insurance scheme are the key determinants affecting microinsurance adoption. Firm- and product-specific factors such as affordability, outstanding claims, risk premiums and benefits paid to microinsurance participants also influence adoption. This study also highlights the crucial role of structural, social and economic factors in predicting demand for microinsurance, utilising Outreville's four-factor insurance demand framework.

Keywords: Microinsurance adoption; Financial inclusion; Outreville's four-factor insurance demand framework; Panel error correction standard errors (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1057/s41288-024-00324-1 Abstract (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: https://EconPapers.repec.org/RePEc:pal:gpprii:v:49:y:2024:i:3:d:10.1057_s41288-024-00324-1

Ordering information: This journal article can be ordered from
http://www.springer.com/finance/journal/41288/PS2

DOI: 10.1057/s41288-024-00324-1

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 ().