The dynamics of microinsurance demand in developing countries under liquidity constraints and insurer default risk
We study the dynamics of microinsurance demand by risk‐averse agents who can borrow and lend subject to a liquidity constraint, and also perceive a risk of insurer default. Liquidity constraints and perceived insurer default both reduce the demand for insurance, possibly leading to nonparticipation....
| Autores principales: | , |
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| Formato: | Journal Article |
| Lenguaje: | Inglés |
| Publicado: |
Wiley
2016
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/148401 |
| _version_ | 1855537002393370624 |
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| author | Liu, Yanyan Myers, Robert J. |
| author_browse | Liu, Yanyan Myers, Robert J. |
| author_facet | Liu, Yanyan Myers, Robert J. |
| author_sort | Liu, Yanyan |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | We study the dynamics of microinsurance demand by risk‐averse agents who can borrow and lend subject to a liquidity constraint, and also perceive a risk of insurer default. Liquidity constraints and perceived insurer default both reduce the demand for insurance, possibly leading to nonparticipation. We also evaluate an alternative insurance design that allows agents to delay premium payment until the end of the insured period when income is realized and indemnities are paid. We show this alternative design increases insurance take‐up by relaxing the liquidity constraint and ameliorating concerns about insurer default. We also investigate the value of delayed premium payment, and the importance of the associated problem of reneging if the insured event does not occur, under a range of conditions. |
| format | Journal Article |
| id | CGSpace148401 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2016 |
| publishDateRange | 2016 |
| publishDateSort | 2016 |
| publisher | Wiley |
| publisherStr | Wiley |
| record_format | dspace |
| spelling | CGSpace1484012025-02-24T06:45:42Z The dynamics of microinsurance demand in developing countries under liquidity constraints and insurer default risk Liu, Yanyan Myers, Robert J. insurance liquidity developing countries We study the dynamics of microinsurance demand by risk‐averse agents who can borrow and lend subject to a liquidity constraint, and also perceive a risk of insurer default. Liquidity constraints and perceived insurer default both reduce the demand for insurance, possibly leading to nonparticipation. We also evaluate an alternative insurance design that allows agents to delay premium payment until the end of the insured period when income is realized and indemnities are paid. We show this alternative design increases insurance take‐up by relaxing the liquidity constraint and ameliorating concerns about insurer default. We also investigate the value of delayed premium payment, and the importance of the associated problem of reneging if the insured event does not occur, under a range of conditions. 2016-03-01 2024-06-21T09:24:35Z 2024-06-21T09:24:35Z Journal Article https://hdl.handle.net/10568/148401 en https://doi.org/10.1002/ajae.12038 Wiley Liu, Yanyan; and Myers, Robert J. The dynamics of microinsurance demand in developing countries under liquidity constraints and insurer default risk. Journal of Risk and Insurance 83(1): 121 - 138 https://doi.org/10.1111/jori.12044 |
| spellingShingle | insurance liquidity developing countries Liu, Yanyan Myers, Robert J. The dynamics of microinsurance demand in developing countries under liquidity constraints and insurer default risk |
| title | The dynamics of microinsurance demand in developing countries under liquidity constraints and insurer default risk |
| title_full | The dynamics of microinsurance demand in developing countries under liquidity constraints and insurer default risk |
| title_fullStr | The dynamics of microinsurance demand in developing countries under liquidity constraints and insurer default risk |
| title_full_unstemmed | The dynamics of microinsurance demand in developing countries under liquidity constraints and insurer default risk |
| title_short | The dynamics of microinsurance demand in developing countries under liquidity constraints and insurer default risk |
| title_sort | dynamics of microinsurance demand in developing countries under liquidity constraints and insurer default risk |
| topic | insurance liquidity developing countries |
| url | https://hdl.handle.net/10568/148401 |
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