From participation to repurchase: Low income households and micro-insurance


Renuka Sane, Susan Thomas


The paper asks what drives insurance coverage in low income households by analysing repurchase patterns of micro-insurance policies. We use data on cus- tomers of a financial services provider from three states in India and find that the probability of repurchase is highest in the first two months after the contract expires, and steadily declines after. This suggests a window of opportunity for fi- nancial firms and governments to target customers to ensure continuous insurance purchase. Non-membership of micro-finance groups and poor rainfall in the month of expiry affect the chance of repurchase adversely. Customers who take longer to repurchase tend to increase the amount of insurance cover.

Citation: From participation to repurchase: Low income households and micro-insurance, Renuka Sane, Susan Thomas. IGIDR Working paper, June 2016.

Links


Commentary