Do Clients Get Value from Microinsurance? A Systematic Review of Recent and Current Research

This study reviews existing literature and ongoing studies on the value of insurance to poor clients. Its objective is to inform the direction of new research on the topic by the Microinsurance Learning and Knowledge (MILK) project. It observes that there is insufficient evidence that microinsurance offers better value to the poor than traditional risk management strategies.

The study indicates significant gaps in existing microinsurance literature. It recommends that new research should:

• Take into account methodological considerations regarding randomized controlled trials;
• Consider the possibility that other mechanisms, or a combination of loans, savings, insurance and cash transfers may best serve poor individuals;
• Use the client math approach to better understand the benefits and costs of insurance;
• Aim to deepen and broaden the understanding of client value;
• Extend learning to urban settings, to models outside Africa and Asia, and to products other than agriculture and health insurance.

The study concludes that it is in these knowledge gap areas that the MILK Project will focus its research, in an effort to provide greater clarity about the value of microinsurance to clients and their families.