Paper
The Demand for Microinsurance in Rural Ghana: Household Survey Report on the Anidaso Policy of the Gemini Life Insurance Company (GLICO)
Analyzing risk management strategies and microinsurance demand in Africa
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21 pages
This report on demand for microinsurance in rural Ghana is based on a household survey undertaken in February 2008 in the Central Region. It is a pilot study conducted by the German Institute of Global and Area Studies (GIGA). The survey examines risk management strategies and demand for microinsurance of low-income households in Africa.
The survey was conducted in districts that had a high percentage of low-income people and showed a high density of rural bank clients holding an insurance contract. Findings indicate that:
- Understanding of insurance among actual as well as potential clients is mixed;
- Most clients demand health insurance and do not understand other types of insurance;
- Clients are unaware or confused about the range of benefits included in their policies;
- Many clients have stopped paying their premiums.
As profits in microinsurance are driven by economies of scale, the report recommends that service providers in Ghana should:
- Educate clients about the contents of their policies;
- Find out reasons for unwillingness to pay;
- Follow principles of customer care;
- Reach more potential clients by advertising on public channels and through insurance education programs.
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