What People Want: Investigating Inclusive Insurance Demand in Ethiopia

One important barrier to developing more inclusive insurance markets is the lack of understanding of the needs of low-income and other un- and underserved populations. This demand research study aims to provide data and information regarding critical inputs to key microinsurance product development opportunities and requirements in Ethiopia. By examining the risks that low-income people face, how they manage them, and identifying gaps, the market can gain valuable inputs into product design, including benefits to offer, better distribution approaches, and marketing and communications strategies. 

The results from the study show a clear gap between the effects of various financial shocks and households’ ability to cope with them and a clear gap of unmet but insurable risks. The survey results also show that experience with and knowledge of insurance is very low, but this can be leveraged as an opportunity as negative bias is also very low. This is positive for insurers, as they can start with a ‘blank slate’ rather than trying to overcome a bias against insurance, which is common in many other markets.