EVALUATING THE IMPACT OF MICROINSURANCE ON FINANCIAL STABILITY AND RISK MANAGEMENT IN LOW-INCOME POPULATIONS

Abstract

 This study examines the performance and impact of microinsurance programs, focusing on their financial sustainability, claim processing efficiency, and influence on policyholders' financial stability. Analyzing data from health, life, property, and crop insurance across various developing countries, the study reveals that microinsurance is instrumental in enhancing financial resilience for low-income individuals. Health and life insurance programs demonstrate high claim approval rates and financial stability, while property and crop insurance face challenges with lower approval rates. The research also highlights that microinsurance positively affects policyholders' savings, reduces debt, and lowers healthcare costs. The integration of technological innovations, such as mobile platforms, is found to improve accessibility and efficiency. Despite its positive impact, the study identifies areas for improvement, including optimizing claims processing and expanding coverage options. The findings underscore the need for ongoing evaluation and refinement to maximize the benefits of microinsurance and address emerging challenges.