What are the benefits of micro-insurance regulation?
Top A lack of regulation may be problematic particularly as far as the legal security of the insured party is concerned. A badly designed legislative framework may restrict the development of micro-insurance and insurance provision for lower-income groups. It is therefore important that legislative frameworks implemented in concerned countries enhance the establishment of micro-insurance schemes while protecting those who are insured. A legislative framework adapted to micro-insurance has at least three major benefits: 1. It ensures the legal security of the insured Micro-insurance institutions collect funds (premiums, subsidies) and conduct insurance activities, often at a local level. To this end, it is important that their activities be carried out in the framework of clear legal rules (notably prudential rules in order to control the viability of these institutions). 2. It enhances the development of micro-insurance institutions and increases the reliability and credibility of thes
