FACTORS AFFECTING MICROINSURANCE GROWTH: LITERATURE REVIEW
Keywords:Microinsurance, Growth, Risk, Trust, Quality of Services, Knowledge of Finance/Insurance
Microinsurance products are designed to help eliminate the risk to low - income people. The use of microinsurance products will make the low - income people can live better quality. The insurance industry, which has access to a large number of microinsurance clients, will make it profitable and grow. But in fact, it was found in the last decade that demand for microinsurance products is still relatively low. As a result, the article aims to review the literature on the factors that influence the growth of microinsurance during year 2006 - 2017 to identify key factors that will help microinsurance grow continuously. The literature review found a number of important factors that came from 1) the insured person including personal characteristics, risk attitudes, financial literacy, understanding of insurance, 2) the insurer that is price and trust of microinsurance products, claim amount, quality of services, trust in insurance companies and their agent, 3) other relevant agencies such as promotion and support from government agencies and non-profit organizations. These factors lead to the creation of new conceptual frameworks for research that will make future research more comprehensive on every issue.
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