Regulation in Microinsurance Markets: Principles, Practice, and Directions for Future Development
Journal
World Development
ISSN
0305-750X
ISSN-Digital
1873-5991
Type
journal article
Date Issued
2014
Author(s)
Abstract
Regulation of any market can either promote or impede its development, thus affecting social welfare. In this paper, we are concerned with the impact of regulation in microinsurance markets. We evaluate existing and potential regulatory mechanisms with regard to its underlying economic rationale, and offer recommendations intended to enhance support and minimize barriers for microinsurance market development. Specifically, we recommend avoiding incentives for regulatory arbitrage; responding to the characteristics of the microinsurance market, including licensing, capital, reinsurance, and distribution systems; enhancing the market through financial literacy initiatives; and providing support in the form of data collection and management training.
Language
English
Keywords
Regulation
developing countries
microinsurance
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Elsevier Science
Publisher place
Amsterdam
Volume
58
Number
-
Start page
21
End page
40
Pages
20
Subject(s)
Division(s)
Eprints ID
220306