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Download or read book The Potential of Microinsurance for Social Protection written by Yvonne Deblon and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Many informal sector employees in developing and emerging countries lack access to reliable forms of social protection: They cannot afford to buy private insurance, they are not covered by social insurance, and they are not entitled to social assistance. Therefore, micro-insurance schemes have built up in many countries to fill the gap and reduce the vulnerability of people in the informal sector. The question is how much micro-insurance can do in this regard: To what degree can micro-insurance contribute to close the gap in social protection coverage in developing and emerging countries? And is it always the best instrument to close the gap? Or are other instruments more effective and efficient in this regard - for example the extension of social insurance or social assistance coverage? The article argues that a systemic perspective on social protection is crucial for analysing the potential of micro-insurance. Micro-insurance is no substitute for social transfers, which are financed by taxes and intended to support the most poor and vulnerable in society. In addition, it is normally not superior to social insurance (especially regarding risks such as illness, old age etc.) as long as both instruments are realistic options, i.e. where there is both, a political will and the necessary capability of the state to build up efficient and equitable social insurance schemes for low-income households. Nevertheless, the potential for micro-insurance is huge in most developing countries because many governments lack the political will or the capabilities to establish public social protection schemes. Many others are also not able to provide comprehensive social protection against every negative effect of all relevant risks for each and every household in a country. And micro-insurance can always be an effective instrument to cover risks that are not coverered by public social insurance schemes.