What is it about?
This paper explores the evolving landscape of microinsurance—now referred to as "inclusive insurance"—as a crucial tool for extending financial protection to the billions who remain outside traditional social security systems. It critically examines why commercial microinsurance approaches have largely fallen short and introduces the "Collaborative and Contributive" (C&C) model as a more effective, community-driven alternative. By emphasizing grassroots participation and risk pooling, the model aligns with social forces that often outmatch market mechanisms in informal settings.
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Why is it important?
This work is particularly significant as it challenges the dominance of top-down approaches like the Bismarck and Beveridge models, which struggle to adapt to the realities of low-income and informal sector workers. The discussion is not just theoretical—it is rooted in 25 years of empirical evidence, policy insights, and practical applications.
Perspectives
From my perspective, this is a game-changer in rethinking insurance for the most vulnerable. It reinforces the urgent need for policymakers, financial institutions, and development organizations to recognize that sustainable risk protection cannot be imposed from above but must be built through collaboration with those it seeks to serve.
Dr David Mark Dror
Micro Insurance Academy
Read the Original
This page is a summary of: Perspective Chapter: Microinsurance’s Quest to Protect the Unprotected, beyond the Bismarck and Beveridge Models, November 2023, IntechOpen,
DOI: 10.5772/intechopen.1002483.
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