Microinsurance

Research questionIn the developing countries, people are destitute which abide be attributed to the political and economic conditions in sum to the situations in the pecuniary and social sector that inhibit the opportunities acquirable for the development.( Islam and Memun,2005,2006). small cite archetype with different machines and practices developed by the smallfinance institutions servicings to reduce the impoverishment. The impact of the trys on miserable people is such that it inhibits the economic and human welfare to a great extent.Personal, social, and natural risks that involve high expenditures increase the poverty. Services offered by the evening gown mechanisms provide more benefits at a funkyer cost than the run when compared to the services of the informal mechanisms, even though the risk factor reduces the enduringness of the little credit. Institution and the borrower are connected by a mechanism which is risk protection or damages. Many of the s mall pecuniary institutions localise on the lenders part of risk and ignore the risk from the borrowers side. Improvements in this area entrust protect the risk of the borrower and extenuate poverty. (Mamun.M.Z).Aim of the thinkThe aim of the present direct is to investigate the relationship among little insurance mechanism and sustainable poverty alleviation among the women of Kiberia of the country Kenya. The view in like manner aims to find out whether at that place is any relationship between the vulnerability and risk retain it awayment, and the capabilities of the micro financial institutions to manage the risk effectively.Objectives of the studyOverview of the micro insurance abridgment of the micro insurance practices in Kenya Analysis of the provisions of the different models of micro insurance. Analyze the performance of the micro financial institutions as providers of micro insurance Investigate the socio-economic and psycho-social aspects of the risk To stu dy the heathen and sociological values and attitudes. Research hypothesis of the studyThe present study focuses on the link between the micro insurance and poverty alleviation, in addition to focusing on such issues as the policies and regulations of the governance of Kenya for insurance in general and micro insurance in particular.Hypothesis-1Micro insurance and its role in the alleviation of povertyInsurance pictureed for the people of low-income group and businesses that is characterized by low agiotages and low suppressage limits. As with the insurance, micro insurance also functions on the concept of risk pooling but by linking many smaller units to larger structures. The concept of micro insurance enhances the functions of insurance as tumefy as supports the structures for the improved governance. Similar to the general insurance, micro insurance covers a wide variety of risks that include health risk and the property risk. (Alexander S. Preker et.al, 2002).Thus the mic ro insurance protects the people of the low income group against certain risks for the concedement of mending premiums. In addition to its coverage of expenses against health risks, it rotter also cover to certain hazards of the business. The main challenge associated with the micro insurance is it has to provide a comprehensive protection that is ideal that could be affordable at low premiums. A mixture of mechanisms will athletic supporter poor people to manage the risks. The new products and services of micro insurance will definitely help poor people to recover the primpbacks. Demand assessment in a right way will help to develop an effective design of the products and services of the micro insurance. Micro insurance is the key for the alleviation of poverty.Hypothesis-2Filling the break to provide the coverage for the excludedSome reports on the market opportunities for the sustainable micro insurance products in Kenya, it was found that only a few mechanisms help to cove r the losses. To recover the losses people borrow, rather than drawing the dense earned money from their savings. In the formal insurance mechanisms, the claiming process is heavy for the people who are illiterate and linkage of the formal insurance to the credit increases the cost of premium.The micro insurance mechanisms are popular in that the call associated with them are understandable, premium payment systems that are flexible, trust and timely pay outs. Poor people use a mixture of the tools to manage the risks as none of the existing strategies have the ability to provide 100% coverage. Micro insurance can play an important and potential role in filling these gaps. To make the mechanism sustainable and effective, there is a remove for the providers of the micro insurance to understand the underlying challenges in the mechanism. It is important to date the range and effective of the risk, learning the advantages and disadvantages of these mechanisms in social obligations .Hypothesis-3Transformation of the micro finance institutions to micro insurance- a new way to fight poverty microfinance is the humanitarian activity for the welfare of the poor people, a small amount of unguaranteed loans, provided for the people for the income generation. The efficiency of the micro loan mechanism encouraged to form this endeavor to a large scale. In many countries legislations were enacted to formalize the activities of this sector. til now there are some draw backs associated with the micro finance institutions. (MFI). deprivation of knowledge in excogitation the product is the draw back with MFIs as these institutions have never attempted the risk calculation and designing matters related to insurance.There are no proper policies of the government that help in giving a scope for reinsurance and work commercially in a full fledged way. There is no specific method available with MFI that can handle the risks effectively, and the MFIs do not adjust the premi ums on par with inflation. The MFIs perform tasks like sale of products, accretion of the premium and pooling the risk. MFIs are sustainable in their growth due to their best relations with the clients and they are high performers in terms of cash collection and sales of the product, consequently their product designing and risk pooling is very poor.MFIs are innovators and practitioners and they have a rich experience and professionalism with poor. They have a better knowledge of adopting the strategies and policies to the target group. It has been shown that MFI does can respond the needs of clients for insurance. These institutions have recognized the fact that insurance has the role protecting the client as advantageously as the institution. The MFIs have an additional source of income that can improve sustainability.Hypothesis-4Changing the policies of the insurance with the intervention of the government is a key to masteryIt is important to establish the concept of micro i nsurance as a market product and the MFIs as providers of service. There are several(prenominal) avenues in this sector that require the intervention of the government. The government has to design its policies in such a way that it can assist the commercial insures and MFIs in an agent partner model and design the schemes base on the strengths of the clients. The generic service business market, with the support of the vertical commodity based business service market by enabling an environment set by government regulations and policies that are relevant to the specific markets offered by the government is a key to the success.Hypothesis-5Poverty in Kenya reflects challenges and complexities in dealing with the alleviation of poverty and making them sustainableThe women lie in around 50% in Kenya and comprise a vulnerable group that faces unique constraints. Most of the women combine home(prenominal) activities with the income generating activities and the lack of time dictates th eir choice of the enterprise. Most of the women that are involved in the small enterprises lack the investment capital.The other constraints include their illiteracy, lengthy beaurocratic procedures to pick out the license, lack of adequate housing, and the limited resources coupled with heavy family responsibilities. Remedial measures by the government and the institutions will not only increase the participation of women in the small micro enterprises but also improves the quality of the life of the plate and the economy of the country as a hole. The intervention of the MFIs with micro insurance designs will help to improve the poor women as well as the institution.MethodologyMy seek studies comprises of quantitative and qualitative studies.Quantitative studiesData collection is do mostly through direct observation and interviews. Most of my sources for the secondary synopsis include books, articles, newspapers and internet. I choose the sources that are mostly of objective n ature. I search for some models and methods to adopt them for my research to find out whether there is any correlation between the micro insurance and poverty alleviation.Qualitative studyData collected from the interviews will enable me to do my qualitative studies in a realistic manner. I will interview the women from the low income group, forcefulness from banks government offices, financial institutions, insurance companies that are involved in the insurance related matters. These interviews will help me to gain a knowledge on the needs of the women of low income group, and their view on the operations of the institution of the micro insurance.Time to be spent on my research studiesThe first nine months will be spent to develop the proposal, methodology and literature review. During this time I will allocate my time also to attend the courses relevant to the opened and research methods as per the recommendations of the university. I will spend four to half-dozen weeks to obta in data from the interviews and statistical work. I will spend cardinal months time in the slums of kibera for an intensive field work. ApplicationWith this proposal I tonus I can apply for a research grant for my research studies.ReferencesAlexander S. Preker, Guy Carrin, David Dror, Melitta Jakab, William Hsiao, Dyna Arhin-Tenkorang (2002). Effectiveness of community health financing in shock thecost of illness. Bulletin of the World Health Organisation 80 (2) 143150. geneva WHO.Islam, Nazrul and Mamun, M. Z. (2006). Prospects of health Insurance Initiatives in Bangladesh An Empirical Study, Proceedings of the Tenth one-year convocation of Asia-Pacific Risk and Insurance Association (APRIA), July 30- August 2, 2006, Meiji University, Tokyo, Japan.Islam, Nazrul and Mamun, M. Z. (2005). Factors for Not acquire Life Insurance Policies in a Developing Country A Case of Bangladesh. Journal of Business Administration, Institute of Business Administration, University of Dhaka, Bang ladesh, Vol. 31, No. 1 & 2, pp. 1-22, January & April 2005.Ziaulhaq Mamun.M, Contribution of Micro-Insurance Augementing The poverty alleviationA Draft Paper Prepared for the 11th APRIA Conference at National Chengchi University, Taipei, Taiwan (July 25-28, 2007)