| Abstract: |
Insurance provision against uncertainties is present in several dimensions of
peoples´s lives, such as the provisions related to, inter alia, unemployment,
diseases, accidents, robbery and death. Microinsurance improves the ability of
low-income individuals to cope with these risks. Brazil has a fairly developed
financial system but still not geared towards the poor, especially in what
concerns the insurance industry. The evaluation of the microinsurance effects
on well-being, and the demand for different types of microinsurance require an
analysis of the dynamics of the individual income process and an assessment of
substitutes and complementary institutions that condition their respective
financial behavior. The evaluation of the microinsurance effects on
well-being, and the demand for different types of microinsurance require an
analysis of the dynamics of the individual income process and an assessment of
substitutes and complementary institutions that condition their respective
financial behavior. The Brazilian government provides a relatively developed
social security system considering other countries of similar income level
which crowds-out the demand for insurance and savings. On the other hand, this
same public infrastructure may help to foster microfinance products supply.
The objective of this paper is to analyze the demand for different types of
private insurance by the low-income population using microdata from a National
Expenditure Survey (POF/IBGE). The final objective is to help to understand
the trade-offs faced for the development of an emerging industry of
microinsurance in Brazil. |