MICROINSURANCE & RURAL INSURANCE MARKETS: AN EMPIRICAL VIEWPOINT

ABSTRACT

Indian insurance industry seems to be in a state of flux. While there has been a perceptible change in the market dynamics since liberalization and economic reforms, a considerable amount needs to be done for future growth and development of the market in an orderly and sustained manner. Micro-insurance refers to insurance products which are designed to provide risk cover for low-income people. Generally, these products are focused towards providing adequate coverage to this customer segment with flexible payment schedules for the lower premiums. To unleash this potential, insurance companies will need to show long-term commitment to the rural sector, design products that are suitable for the rural population and utilize appropriate distribution mechanisms.

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