Impact Insurance Research Paper #4: Microinsurance product design

Research Paper #4 presents a survey-based study on preferences for microinsurance products in rural Kenya. More specifically, the study examines preferences for deductibles and rebates. Like consumers in developed countries, the majority of the respondents in this study have a preference for policies without deductibles and for policies with rebates. Risk aversion, financial literacy, health shocks, economic activities and prior experience with insurance affect these preferences. The results of the study suggest that higher uptake of microinsurance might be achieved by taking these preferences and their determinants into account in the design of microinsurance products.