Assessing Risk Mitigation Strategies and Their Impact on the Efficiency of Micro-Insurance Products

Microinsurance, aimed at providing affordable and accessible risk protection to low-income and disadvantaged groups, has become a crucial tool for strengthening financial resilience. Despite its potential, it faces significant challenges such as limited awareness, access difficulties, and operational inefficiencies that restrict its reach and impact. This study evaluates the viability of microinsurance by examining key factors like demand, operational efficiency, customer satisfaction, perceived value, and financial sustainability. Findings reveal strong positive relationships between adoption rates, customer satisfaction, and perceived value, indicating that aligning product benefits with customer expectations is essential for boosting uptake. Operational efficiency also significantly enhances both satisfaction and perceived value. However, issues such as enrollment barriers and financial sustainability remain pressing concerns. The weak link between enrollment barriers and other variables suggests a need for targeted interventions, including awareness campaigns, innovative distribution strategies, and tailored product designs. Overall, the study highlights that improving operational processes, customer experience, and perceived product value is critical to expanding the adoption of microinsurance and advancing broader financial inclusion and poverty alleviation efforts.