Comparative Study on Microinsurance - Oct 2017

Microinsurance is a financial service, besides savings, credits and cashless payments that particularly targets those that are ignored by mainstream commercial insurance and social insurance schemes, mostly because they are not part of the formal sector. Growing international experience reveals that microinsurance helps low-income people avoid difficult and devastating risk-coping measures such as putting children to work, eating less food, or selling productive assets. However, usage of microinsurance products in Nigeria remains low at 0.3 million adults, out of an adult population of 96.4 million.

In October 2017, EFInA commissioned this study to compare Nigeria with similar landscapes such as Ghana, Pakistan, South Africa and Zambia with significantly higher microinsurance uptake to understand why microinsurance has been successful in these landscapes. Findings from the study revealed that microinsurance requires a good combination of enabling factors from the overarching policy environment, encouraging market dynamics and demand, and insurance regulation & its effective supervision to succeed in Nigeria.

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