Paper

Market for Microinsurance in Armenia: Low-Income Households Needs and Market Development Projections

Projecting the growth of Armenian microinsurance sector

This report presents findings on the potential market for microinsurance in Armenia. It is the result of quantitative research conducted across low-income Armenian households.Low-income households can increase their risk management capacities through microinsurance. Products providing life/disability insurance, health insurance and agricultural insurance are expected to significantly aid in reducing vulnerability in Armenia. Study findings include:

  • Low-income market forms approximately 60-75 percent of the total insurance market;
  • Current market access is estimated at 11–25 percent of the total market;
  • Most households are skeptical about insurance and distrustful towards insurers, making market development a challenging task.

The study recommends a mixture of strategies to develop the microinsurance sector. Apart from developing new microinsurance products adapted to the needs of the low-income market, the outreach strategy should incorporate:

  • General financial education, which encourages people to be more proactive in managing risks;
  • Education on microinsurance, which focuses on building knowledge of the risk-pooling concept;
  • Marketing strategy that emphasizes the price factor;
  • Low-cost delivery channels allowing affordable delivery services for the target group.

About this Publication

By Pytkowska, J., Collier, A.
Published