Microinsurance: A Risk Management Strategy
Over two billion people worldwide lack any type of formal social security protection. Poor people are the least likely to benefit from coverage, yet hey are the most vulnerable to risk economic stress. Responding to this situation requires the involvement of a range of actors, including national governments, communities, the private sector, and development agencies. Currently in the spotlight, micro-insurance is one of many financial services that helps manage risk; others include emergency loans and flexible savings. Donor agencies should approach this promising but untested field with caution.