Document / Publication

  • Do more with your content!Discover PreventionWeb Services
  • Disaster insurance for the poor? a review of microinsurance for natural disaster risks in developing countries
    https://www.preventionweb.net/go/2059

    Email sent!

    An email has been sent to the email addresses provided, with a link to this content.

    Thank you for sharing!

    OK

Disaster insurance for the poor? a review of microinsurance for natural disaster risks in developing countries

Source(s):  International Institute for Applied Systems Analysis (IIASA)
ProVention Consortium

This study provides an in-depth review of microinsurance by analysing a range of case studies and examining the benefits and limitations of microinsurance. The results of the study show clear evidence of the value and potential of microinsurance in transferring risk and protecting low-income households and businesses against disaster losses. Microinsurance can provide access to post-disaster liquidity, thus protecting assets and livelihoods as well as providing funds for reconstruction. As insured households are more creditworthy, insurance can also promote investments in productive assets, for example higher- risk/higher-yield crops. Moreover, insurance can encourage investment in disaster prevention if insurers offer lower premiums to reward risk-reducing behaviour. Thus the study suggests microinsurance can be considered as an effective risk-transfer mechanism and an integral part of an overall disaster risk management strategy. However, the long-term viability of such programmes, particularly in the face of large covariant losses, is still to be determined. The study concludes with a number of key challenges and next steps for the evolving microinsurance agenda.



Add this content to your collection!

Enter an existing tag to add this content to one or more of your current collections. To start a new collection, enter a new tag below.

See My collections to name and share your collection
Back to search results to find more content to tag

Log in to add your tags
  • Disaster insurance for the poor? a review of microinsurance for natural disaster risks in developing countries
  • Publication date 2006
  • Author(s) Mechler, Reinhard; Linnerooth-Bayer, Joanne; Peppiatt, David
  • Number of pages 31 p.

Please note:Content is displayed as last posted by a PreventionWeb community member or editor. The views expressed therein are not necessarily those of UNISDR PreventionWeb, or its sponsors. See our terms of use