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Journal of Microfinance / ESR Review

Abstract

Community based microinsurance has aroused much interest and hope in meeting health care challenges that face the poor. In this paper we explore how institutional rigidities, such as credit constraint, affect the demand for health insurance and how insurance could potentially prevent poor households from falling into the poverty trap.In this setting, we argue that the appropriate public intervention to generate demand for insurance is not to subsidize premium, but to remove these rigidities (i.e., ease credit constraint). Thus from an insurance perspective as well, our analysis highlights the importance of the poor having the appropriate saving and borrowing instruments.

Biography

Rajeev Ahuja is a Senior Fellow at the Indian Council for Research on International Economic Relations (ICRIER).; Johannes Jütting is a Senior Economist at OECD Development Centre.

Section

Articles

Journal Title

Journal of Microfinance

Issue and Volume

6-1

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