Predating insurance Visiochat francese prive
Progress in Bangladesh One of the greatest challenge for microinsurance is the actual delivery to clients.
Methods and models for doing so vary depending on the organization, institution, and provider involved.
The last definition therefore, includes the critical features of the previous three: Microinsurance, like regular insurance, may be offered for a wide variety of risks.
These include both health risks (illness, injury, or death) and property risks (damage or loss).
When farmers are insured against a bad harvest (resulting from drought), they are in a better position to grow crops which give high yields in good years, and bad yields in year of drought.
Insurance functions on the concept of risk pooling, and likewise, regardless of its small unit size and its activities at the level of single communities, so does microinsurance.
Microinsurance links multiple small units into larger structures, creating networks that enhance both insurance functions (through broader risk pools) and support structures for improved governance (i.e.
) against specific perils in exchange for regular premium payment proportionate to the likelihood and cost of the risks involved.
This definition is exactly the same as one might use for regular insurance except for the clearly prescribed target market: low-income people.