Group-based Funeral Insurance in Ethiopia and Tanzania

Understanding indigenous institutions providing funeral insurance and their scalability
Download 40 pages

This paper researches indigenous institutions in rural Tanzania and Ethiopia that provide group based and other insurance. According to the authors, these institutions are networks with well defined rules and regulations in the form of:

  • Defined membership rules;
  • Specific contributions for membership;
  • Fines related to deviant behavior.

The authors carried out primary research in Tanzania and Ethiopia to conduct an in depth study about these funeral insurance providers. The paper is structured on the following lines:

  • Need for the study;
  • Basic characteristics of such institutions including the products and services provided;
  • History of these groups;
  • Economics of such institutions;
  • Exclusion, coverage and impact;
  • Analysis of characteristics of group members.

The authors present a significant finding of characteristics of group members and make a case for employing such well structured institutions towards other developmental activities:

  • Different socio-economic groups come together to form groups;
  • They observe no particular pattern is observed in member characteristics;
  • This suggests the inclusive nature of these groups.

The paper concludes by providing suggestions on how to scale up the well structured funeral insurance providers.

About this Publication

By Dercon, S., Bold, T., De Weerdt, J. , Pankhurst, A.