ASSESSMENT OF MICRO INSURANCE AS AN EMERGING MICROFINANCE FOR THE POOR: A STUDY ON SOMALIA

Abstract

This research aims to determine whether microinsurance could take the role of conventional microfinance for the underprivileged in Somalia. The current situation of micro-insurance in Somalia is examined in this study, along with the difficulties encountered and the potential for development. The study also investigates how the poor view micro-insurance and whether they are willing to use this financial tool. The outcomes of this paper will aid in shaping future micro-insurance programs that are more successful by shedding light on the viability of using it to help Somalia's poor gain financial inclusion. The study examined how micro-insurance affects the poor's access to the financial system and risk management skills. The non-probabilistic sampling method is used to conduct the study, including a literature review, stakeholder interviews, and surveys of clients. The results of this study will help researchers better understand how microinsurance may be used in Somalia to promote financial inclusion and fight poverty. The findings will also help policymakers and practitioners to figure out the best strategy for utilizing micro insurance’s potential to lessen poverty and encourage financial inclusion among the underprivileged in Somalia.