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Microinsurance: The Choice among Delivery and Regulatory Mechanisms

Ahsan, Syed M and Mahmud, Minhaj (2011): Microinsurance: The Choice among Delivery and Regulatory Mechanisms.

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We analyse the choice of the appropriate delivery mechanism(s) relevant to various types of microinsurance products in a developmental context like that prevailing in Bangladesh. By examining various delivery mechanisms under different institutional contexts, we analyse the conditions under which they operate best. Then we develop a few criteria that are likely to offer cost efficiency as well as customer acceptance, and judge between different schemes in light of these criteria, and dwell on the interface between the choice of the delivery model and the regulatory stance. Finally, we put forward a set of regulatory and supervisory directives that respect both product and process innovations and uphold the goals of cost efficiency, financial viability and client inclusivity.

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