TY  - JOUR
AB  - Purpose– The purpose of this paper is to identify the factors which influence the demand for micro‐insurance services among the informal sector workers of Ghana who are quite vulnerable to various risks in the economy.Design/methodology/approach– The study adopts a quantitative technique based on primary data sampled randomly from 100 informal sector workers from four major market centers in Accra, Ghana. The probit regression model was used for the empirical investigation.Findings– Empirical investigation using the probit model indicates that premium flexibility, income level and nodal agency are significant determinants of micro‐insurance demand. Insurance knowledge, expectation (trust) and marital status were also found to have positive and significant impact on the demand for micro insurance. Interestingly, the empirical analysis shows that formal education is not a significant determinant; rather one's level of insurance knowledge has a positive and significant impact on micro‐insurance demand.Social implications– Insurers must consider the nature of the cash‐flow of informal workers in the design of premiums. The government must integrate micro insurance into its poverty reduction program.Originality/value– The micro‐insurance market is very new and unresearched in Ghana. This foundational study is, therefore, very original and a most valuable guide to commercial insurance companies which want to venture into this huge untapped opportunity in the Ghanaian informal sector.
VL  - 12
IS  - 3
SN  - 1526-5943
DO  - 10.1108/15265941111136932
UR  - https://doi.org/10.1108/15265941111136932
AU  - Akotey Oscar Joseph
AU  - Osei Kofi A.
AU  - Gemegah Albert
PY  - 2011
Y1  - 2011/01/01
TI  - The demand for micro insurance in Ghana
T2  - The Journal of Risk Finance
PB  - Emerald Group Publishing Limited
SP  - 182
EP  - 194
Y2  - 2024/04/18
ER  -