IPS Researcher Highlights the Importance of Developing Micro-insurance as a Risk Coping Mechanism

13 January 2018
Kandy

 

IPS Research Officer, Samanthi Bandara, recently highlighted the importance of developing micro-insurance as a risk coping mechanism for the poor in rural areas.

She made this observation during her presentation at the 11th Annual Research Forum of Sri Lanka Agricultural Economic Association (SAEA), on Natural Disasters, Risk, and Agriculture, held in Kandy on 13 January 2018.

Ms. Bandara discussed the determinants of the demand for micro-insurance among the rural population in Sri Lanka, namely, high premiums, irregular incomes, and the lack of awareness, trust and uncertainty on continuous payment of premiums; these factors reduce the enrollment in insurance schemes, she noted.

Further, she emphasized that the micro-insurance sector requires a strong regulatory framework for its expansion.

Her presentation is based on the IPS Research on ‘Demand for Micro-insurance in Sri Lanka’.