Is a Friend in Need a Friend Indeed? Inclusion and Exclusion in Mutual Insurance Networks in Southern Ghana

The authors examine the role of social relations in obtaining assistance in the face of shocks in order to identify individuals who are more likely to fall outside of mutual insurance networks and require interventions to help them cope with risk.  The study uses data from rural Ghana and finds that:

• At the household level, asking for and receiving assistance from the spouse is related to gender, the quality of the marital relationship, and the wealth of household members;
• At the community level, asking for and receiving help are correlated with membership in a major lineage, participation in secular organizations, the individual's fostering history, and anticipated land inheritance.

The study also finds that individuals who are asset poor are more likely to be short of cash for household and personal items and are more likely to ask their spouse for assistance with the household item. Concludes that mutual insurance is more needed by the poor, but equally accessible to them.