The objective of the study was to provide qualitative information relating to demand side analysis on the need for micro-insurance in the country, as part of a larger assessment/diagnostic on micro insurance development for Sri Lanka. The methodology consisted primarily of qualitative data analysis with the use of quantities wherever possible. The study used two methods namely; survey method and interview method. There were ten FGDs (2 in each district) based on a focus group guidelines in five selected districts( Ratnapura,Hambantota,Moneragala,Ampara,Kalutara). Qualitative data collected from the field were analyzed by using the method of Content Analysis and demographic data were analyzed through using spread sheets. Microsoft Excel was used as quantitative data analysis tool to analyze and interpret gathered data.
The study found that the high premiums, irregular incomes, lack of awareness, trust and uncertainty on continuous payment of premiums have been identified as the major reasons for the poor enrolment of people in different micro insurance programmes and high drop outs of micro insurance policies. Given that the need for micro insurance is in existence, state and private micro insurance providers should focus more attention on increasing the demand for micro insurance and access to insurance products.