Microinsurance: A PRISMA-compliant systematic review of its regulatory-, subsidy-, demand- and supply-side determinants

Abstract

Guided by the holistic stance of the systems theory and motivated by the ultimate mission to enhance poor people’s access to formal microinsurance, the current study innovatively looked beyond reviewing only the determinants of the demand-side of formal microinsurance development (FMID), as narrowly portrayed in the extant literature reviews of Platteau et al. (2017) and Eling et al. (2014). Reviewing and optimally managing the determinants of other sides or dimensions of FMID (i.e., the subsidy-supply-regulatory sides) are also mission-critical for the governance and advancement of formal microinsurance. One hundred sixty-two (162) articles were systematically gathered and analysed using PRISMA (the preferred reporting items for systematic reviews and meta-analyses), with evidence that literature has focused mainly on the impact of various endogenous determinants, while exogenous determinants have been largely overlooked. Amongst 52 articles short-listed, “interest rate” was the only exogenous determinant ever empirically affirmed as a variable influencing FMID. Furthermore, “insurance literacy” and “innovation” were identified as the most investigated endogenous determinants on the demand- and supply-sides of FMID, respectively. The study also evinced the dearth of research in investigating the determinants of the subsidy- and regulatory-sides of FMID. Empirical games and natural experiments were the most probing and revealing methodologies, churning out innate/relational tendencies of research respondents and more interesting evidence than initially envisaged. The geographical research focus was majorly on Asia and Africa. The paper presents more literature gaps, coupled with guides for future policy and market governance.