Munich Personal RePEc Archive

Effect of financial literacy on willingness to pay for micro-insurance by commercial market business operators in Ghana

Yeboah, Augustine Kwadwo and Obeng, Camara Kwasi (2016): Effect of financial literacy on willingness to pay for micro-insurance by commercial market business operators in Ghana.

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Abstract

This study investigated the effect of financial literacy on willingness to pay for micro-insurance among informal commercial market business operators in Ghana. Heckman’s Two-Step Estimation Technique is used to examine data on 612 informal commercial market business operators from selected major urban market centres in Ghana. The results indicate that financial literacy increases the amount willing to pay for micro-insurance. Other determinants of willingness to pay for micro-insurance include marital status, dependents, savings, trust, premium payment mode and income. The study recommends that microfinance institutions should strengthen financial education to increase the uptake of micro-insurance.

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