Rake iroro

FACULTY OF COMMERCE
DEPARTMENT OF INSURANCE AND RISK MANAGEMENT
AN INVESTIGATION ON THE FEASIBILITY OF MICROINSURANCE IN RURAL
ZIMBABWE.
BY
NCUBE CONSIDER
R103046W
A DISSERTARTION SUBMITTED TO MIDLANDS STATE UNIVERSITY IN PARTIAL
FULFILMENT OF THE REQUIREMENTS OF A BACHELOR OF COMMERCE
(HONOURS) DEGREE IN INSURANCE AND RISK MANAGEMENT.
MAY 2014

i
MIDLANDS STATE UNIVERSITY
P. BAG 9055 Telephone: (263) 54 260404/260337
Gweru Fax: (263) 54260233/260311
Zimbabwe
FACULTY OF COMMERCE
RELEASE FORM
NAME OF AUTHOR: NCUBE CONSIDER
DEGREE PROGRAM: BACHELOR OF COMMERCE HONOURS DEGREE IN
INSURANCE AND RISK MANAGEMENT
PROJECT TITLE: AN INVESTIGATION ON THE FEASIBILITY OF
MICROINSURANCE IN RURAL ZIMBABWE
SUPERVISOR: MR. S. MASIYIWA
YEAR OF AWARD: 2014
Permission is hereby granted to the Midlands State University library to produce single copies of this
dissertation and to lend or sell such copies for private, scholarly, or scientific research only. The author
reserves other publication rights. Neither the dissertation nor extensive extracts from it may be printed
or otherwise reproduced without the author’s permission.
SIGNED……………………..… DATE …………………………

ii
MIDLANDS STATE UNIVERSITY
FACULTY OF COMMERCE
APPROVAL FORM
The undersigned certify that they have supervised the student Ncube Consider on the dissertation
entitled:
An investigation on the feasibility of microinsurance in rural Zimbabwe; submitted in partial
fulfilment of the requirements of the Bachelor of Commerce (Honours) degree in Insurance and
Risk Management.
Supervisor ………………………. DATE………/………/2014
(Signature)
Chairperson ……………………….. DATE………/………/2014
(Signature)
External reviewer………………….DATE...………/...……./2014

iii
DEDICATION
Dedicated to Ruvimbo, Lydia and Misione

iv
ACKNOWLEDGEMENTS
Gratitude that words cannot express goes to God my personal saviour who has guided and provided
for me before and during my final year. I wish also to acknowledge the support and commitment
of my colleagues from Riskier class of 2014. It became easy to identify and associate oneself with
everyone given the warm welcome and platform to learn that was made available to me.
I wish to make special mention of Ms. Ringisai from Zimre Holdings and Mr. Maswebo from
Zimnat Insurance Company for their valuable input on the development of microinsurance in
Zimbabwe.
Further acknowledgements go to my supervisor Mr. S Masiyiwa and also to all my lecturers for
preparing me for my final year.
I also wish to thank my family and friends (Raymond, Tawanda, Lewis and Simbarashe) for the
moral and financial support they continued to give me throughout the four years.

v
ABSTRACT
Risk is ever present in the lives of the rural poor. The risk management strategies used by rural
poor also include transfer of risk to third parties. Microinsurance is a product specifically designed
for the rural poor. The research sort to investigate the feasibility of introducing microinsurance in
Zimbabwe. Literature on microinsurance by different scholars was reviewed to give an in-depth
understanding of microinsurance. Questionnaires and interviews were used as data collection
instruments. The data was presented using graphs, pie charts and tables. Findings from the study
revealed that there is demand for microinsurance and that insurers are also supplying
microinsurance products. Insurance companies were recommended to be innovative and introduce
more microinsurance products targeted primarily at the rural poor to complement the existing
products.

vi
TABLE OF CONTENTS
RELEASE FORM............................................................................................. i
APPROVAL FORM ........................................................................................ ii
DEDICATION................................................................................................ iii
ACKNOWLEDGEMENTS .............................................................................iv
ABSTRACT......................................................................................................v
Chapter 1 ......................................................................................................... 2
Introduction..................................................................................................... 2
1.0 Introduction...............................................................................................2
1.1 Background to the study..........................................................................2
1.1 Statement of the problem............................................................................3
1.2 Research questions..................................................................................3
1.3 Research objectives.................................................................................3
1.4 Significance of study..................................................................................4
1.5 Delimitation of the study............................................................................4
1.6 Limitations of the study..............................................................................4
1.7 Definition of terms .....................................................................................5
1.8 Summary...................................................................................................5
Chapter 2 ......................................................................................................... 6
Literature review............................................................................................. 6
2.0 Introduction...............................................................................................6
2.1 Defining Microinsurance............................................................................6

vii
2.1.1 Characteristics of Microinsurance............................................................8
2.2 Evolution of Microinsurance ....................................................................10
2.3 Benefits of Microinsurance.......................................................................11
2.4 Microinsurance and Traditional insurance .................................................12
2.5 The Demand for Microinsurance...............................................................13
2.5.1 Socioeconomic Profile of Microinsurance Clients...................................13
2.5.2 Prioritising Risks...................................................................................14
2.5.3 Risk Management..................................................................................14
2.6 Supply of Microinsurance.........................................................................17
2.6.1 Major Microinsurance Products in Supply..............................................19
2.7 Regulation of Microinsurance...................................................................20
2.7.1 Current Regulatory Reforms Targeting Microinsurance ..........................20
2.7.2 Role of Regulation ................................................................................22
2.7.3 The Implication of Regulation on Microinsurance ..................................23
2.8 Summary.................................................................................................25
Chapter 3 ....................................................................................................... 27
Research Methodology................................................................................... 27
3.0 Introduction...........................................................................................27
3.1 Research Design.....................................................................................27
3.2 Study Population....................................................................................27
3.3 Sampling ...............................................................................................28
3.3.1 Sampling Techniques ..........................................................................28

viii
3.3.2 Sample Size ........................................................................................29
3.4 Research Instruments and Data Collection...............................................29
3.5 Primary Data..........................................................................................30
3.5.1 Questionnaires.....................................................................................30
3.5.2 Personal Interviews .............................................................................31
3.6 Secondary Data ......................................................................................32
3.6.1 The Internet.........................................................................................32
3.6.2 Textbooks and Journals .......................................................................33
3.7 Data Analyses and Presentation Plans .....................................................33
3.8 Summary ...............................................................................................34
Chapter 4 ....................................................................................................... 35
Data Presentation, Analysis and Discussion................................................... 35
4.0. Introduction............................................................................................35
4.1 Response Rate..........................................................................................35
4.2 Data Analysis from the Rural Poor............................................................36
4.2.1 Income Levels.......................................................................................36
4.2.2 Familiarisation with the concept of insurance .........................................36
4.2.3 Willingness to buy insurance policies.....................................................37
4.2.3 Reasons Cited for not taking up insurance ..............................................38
4.2.5 Expected Claim turn around period. .......................................................39
4.2.6 Major Risks and coping strategies identified by the respondents..............40
4.2.7 Willingness of the rural poor to pay premiums with their produce ...........41

ix
4.3 Responses from Insurers...........................................................................41
4.3.1 Organisations offering products targeted primarily at the rural poor.........41
4.3.3 Products currently available on the market .............................................42
4.3.4 Premium level being charged .................................................................42
4.2.5 Flexibility of premium payment plan......................................................43
4.2.6 Challenges faced by insurers in providing microinsurance ......................44
4.3.7 Is the current regulatory environment conducive? ...................................44
4.3.8 Other players that may be instrumental in the development of
microinsurance. .............................................................................................45
4.4 Summary.................................................................................................45
Chapter 5 ....................................................................................................... 47
Conclusions and Recommendations............................................................... 47
5.0 Introduction.............................................................................................47
5.1 Summary of Findings ...............................................................................47
5.2 Recommendations....................................................................................48
5.3 Conclusion...............................................................................................49
5.4 Areas for further research .........................................................................50
5.5 Summary.................................................................................................50
Appendix A .................................................................................................... 54
Appendix B .................................................................................................... 56
Appendix C .................................................................................................... 58
Appendix D- Approval letter ......................................................................... 59

x
LIST OF TABLES
Table 2.1: Difference between Traditional Insurance and Microinsurance ...........12
Table 2.2: Priority Risk in selected Countries .....................................................14
Table 3.1: Rule of thumb...................................................................................29
Table 4.1: Response Rate ..................................................................................35
Table 4.2: Major risks and coping strategies.......................................................40
Table 4.3: Products currently available on the market .........................................42
LIST OF FIGURES
Figure 2.1: Janus: The two faces of microinsurance..............................................8
Figure 2.2: Risk Management Strategies. ...........................................................15
Figure 4.1: Respondent Income Levels ..............................................................36
Figure 4.3: Familiarisation with the concept of insurance....................................37
Figure 4.4: Willingness to buy insurance............................................................38
Figure 4.5: Reasons for not taking up insurance .................................................39
Figure 4.6: Expected claims turn around period..................................................40
Figure 4.7: Willingness to pay premiums with farm produce...............................41
Figure 4.8: Organisations offering microinsurance products................................42
Figure 4.9: Premium levels being charged..........................................................43
Figure 4.10: Premium payment plans .................................................................43
Figure 4.11: Conduciveness of the regulatory environment .................................45
Figure 4.12: Other instrumental players .............................................................45

2
Chapter 1
Introduction
“There is no other beginning of learning than wonder” -PLATO.
1.0 Introduction
This chapter introduces the study. It discusses the background and outlines the statement of the
problem. Research questions to be addressed are stated. Furthermore, the significance of the study,
delimitations and limitations will be outlined and key terms used in the study defined.
1.1 Background to the study
The report by Allianz et al (2006:5) ask the question that, “what happens when a poor family’s
breadwinner dies, when a child in a disadvantaged household is hospitalized, or the home of a
vulnerable family is destroyed by fire or natural disaster? Every serious illness, every accident and
every natural disaster threatens the very existence of poor people and usually leads to deeper
poverty. Risk is ever present in the lives of the poor. According to United Nations Development
Program (2006), currently over one billion people live in extreme poverty on less than a $1 a day
without access to most of the social services basic to a decent quality of human life. As observed
by the Poverty Reduction Forum Trust (PRFT), poverty is now a phenomena that is characterising
our Zimbabwe. Poverty is characterised by lack of capacity to acquire decent shelter, provide
regular and healthy meals, pay for children’s education and access needed health care (PRFT et al,
2011). According to The Zimbabwean of 20 April 2013, an average person in Zimbabwe survives
on $1.16 per day.
According to UNDP (2006:73) “vulnerability to risk from stresses and shocks including illnesses,
injuries, property loss and premature death are everyday realities for the poor”. They also go on to
note that it is the poor people occupying marginal dangerous and less desirable locations to live
and make out livelihood who are hardest hit by natural disasters. The Herald of 17 February 2014
carried an article of the Tokwe-Mukosi disaster reports that, floods currently ravishing the Tokwe-
Mukosi dam basin in Masvingo had killed two people, caused massive financial losses and created
a difficult humanitarian crisis that has left twenty thousand people either homeless or hungry. In
the absence of precautionary or ex-ante risk management instruments, most are forced to rely on

3
a range of options after the fact ex post. When a crisis occurs, a common coping strategy is to
borrow from the money lenders (Churchill, 2006).
Thornburn (n.d) identifies notable features about the rural poor clients. The features include
irregular income, informality, high vulnerability to risk, low financial and actual literacy, high risk
environment (low security, more vulnerable living environment, and limited access to service).
Thornburn’s assessment describes partially the Zimbabwean rural area situation. He goes on to say
that many of these poor people pay more for informal risk management, (Thornburn n.d).
According to Maleika and Kuriakose (2008), “…informal and formal approaches offer limited
protection, low returns for households and are prone to breakdown during emergencies”. This
leaves the rural poor exposed to risk with no safety net to fall on.
Microinsurance is specifically designed for the protection of low -income people, with affordable
insurance products to help them cope with and recover from common risks. It is a market-based
mechanism that promises to support sustainable livelihoods by empowering people to adapt and
withstand stress (Allianz et al, 2006). Churchill (2006) also adds that, microinsurance can assist
the poor to maintain a sense of financial confidence even in the face of significant vulnerability.
Microinsurance is the safety net for the rural poor.
1.1 Statement of the problem
Given the above background, how feasible is microinsurance to the rural poor in Zimbabwe?
1.2 Research questions
The study will answer the following questions:
a) What are the regulatory challenges that maybe encountered in introducing microinsurance in
Zimbabwe?
b) What microinsurance products can be developed for the rural market?
c) What lessons can be learnt from other jurisdictions in the world?
1.3 Research objectives
The study seeks to achieve the following:
a) To assess the regulatory challenges that maybe encountered in introducing microinsurance.

4
b) To assess the feasibility of microinsurance to the rural poor in Zimbabwe.
c) To identify microinsurance products that can be developed for the rural market.
d) To evaluate the lessons that can be learnt from other jurisdictions in the world.
1.4 Significance of study
This research will be of importance to the following stakeholders:
a) To the insurance companies
Recommendations from the study will assist insurers to increase their gross written premium hence
profitability.
b) To the customers
The research will demystify insurance to the general public.
c) To Midlands State University
This research report will be deposited in the University library and will provide reference material
for other students and scholars.
d) To the researcher
The researcher will gain more understanding of insurance operations and of the area under study.
1.5 Delimitation of the study
The research will focus on the rural poor and short term insurance companies. The study will be
carried out in Umzingwani located in the Matabeleland South and Harare were most short term
insurance companies are located. The research will be carried out from January 2014 to May 2014.
1.6 Limitations of the study
a) Limited Time –the study will be conducted within a limited time since they will be deadlines
to meet. To counter this limitation, the research will use random sampling instead of carrying
out a complete census of the whole population.
b) Financial Constraints –the research will require the researcher to do a lot of travelling to the
study area. Since the researcher do not have a budget, financial constrains will affect the
research. To manage this limitation, the researcher will use questionnaires which are cheaper.

5
1.7 Definition of terms
a) Microinsurance - is a mechanism to protect poor people against risk (e.g. accident, illness,
death in the family, and natural disasters) in exchange for payments tailored to their needs,
income, and level of risk. (http//:www.microinsurancefacility.org accessed on 05/03/2014)
b) Poverty - Lok-Dessalien in Poverty Reduction Forum Trust et al (2011) define poverty as the
absence of basic human capabilities to function at a minimally acceptable level within a
society.
c) Vulnerability – is the ability of individuals and households to deal with risk (Churchill, 2006)
1.8 Summary
The chapter introduced the study and discussed the background. The researcher also looked at the
statement of the problem, research questions, research objectives, significance of the study,
delimitations of the study and limitations of the study. Key words in the chapter were also defined.

6
Chapter 2
Literature Review
“Defining Microinsurance: A journey towards a common understanding” -
Molly Ingram and Michael J. McCord
2.0 Introduction
This section will establish the base for the research by looking at what other researchers have
discovered in their various studies on the subject. The researcher will formulate a working
definition of microinsurance basing on the existing definitions and brief history of microinsurance.
The researcher will also go on to look at the demand and supply matter of microinsurance and
finally the regulatory framework in selected jurisdictions.
2.1 Defining Microinsurance
Microinsurance before the year 2000 was a term not well known and even less defined (Ingram
and McCord, 2011). Allianz AG et al (2006) define microinsurance as the protection of low income
people against specific perils in exchange for regular premium payments proportionate to the
likelihood and cost of the risk involved. Churchill (2006) also agrees and define in the same words
as the protection of low income people against specific perils in exchange for regular premium
payment proportionate to the likelihood and cost of risk involved. He goes on to note that the
definition of microinsurance is essentially the same as one might use for regular insurance except
for the clearly prescribed target market: low income people.
Ingram and McCord (2011) argue that, initial definitions of microinsurance show three major
groupings in the way microinsurance or more specifically “micro” is defined. They argue that the
first way follows Dror’s example, is by defining “micro” as the level of society (community based
groups as the insurer), the second the CGAP footsteps that use “micro” to indicate the consumer
of microinsurance and the third application of “micro” is in reference to the product itself.
The “micro” product based definition have been the most recent to develop and are mainly used
by countries as part of microinsurance regulation. By establishing cost and coverage limits or that
requirement for capital or training, regulators can attempt to control who can access
microinsurance (Ingram and McCord, 2011).

7
International Association of Insurance Supervisors (IAIS) and CGAP Working Group on
Microinsurance (2007) define microinsurance as insurance that is accessed by low income
population, provided by a variety of different entities, but run in accordance with generally
accepted insurance practises (which should include the Insurance Core Principles). This means
that the risk insured under a microinsurance policy is managed based on insurance principles and
financed by premiums. This definition is consumer based.
Product based definition apply the term “micro” to the characteristics of the products, such as
having low premium, low level of coverage and being affordable (Ingram and McCord, 2011).
http://www.microinsurancefacility.org/about/what-is-microinsurance visited 22/03/2014, define
microinsurance as a mechanism to protect poor people against risks in exchange for insurance
premium payments tailored to their needs, income and level of risk. The definition given is product
based.
According to Churchill (2006) microinsurance does not refer to the size of the risk carrier. There
are large insurance companies that provide microinsurance products. Microinsurance is neutral in
terms of the size of the risk carrier. Churchill also goes on to assess that microinsurance does not
refer to the scope of the risk as perceived by clients. The risks themselves are by no means “micro”
to the households that experience them.
According to Lloyds (2009) the concept of microinsurance means different things to different
people. Commercial insurers see it as a way of reaching larger underserved markets, development
institutions, such as the World Bank and United Nations, focus on its potential to secure poverty
reduction and academics argue that financial sector development is as essential as industrialisation
for sustainable economic growth. Churchill (2006) also agrees with the two faced characteristic of
microinsurance. He states that there are two main varieties of microinsurance- one focused on
extending social protection to the poor in the absence of appropriate government schemes and the
other offering a vital financial service to low income households by developing an appropriate
business model that enables the poor to be a profitable market segment for commercial insurers.
Churchill considers microinsurance like Janus, the ancient Roman god of gates and doors, also the
god of beginnings, who is depicted with two faces, yet one body as shown in figure 2.1:

8
Figure 2.1: Janus: The two faces of microinsurance
A new market for insurers social protection for workers in the
informal sector
Source: Churchill (2006)
Regardless of whether one is looking at microinsurance from a social protection or a market based
approach, the body of the insurance scheme its basic operations will be largely the same (Churchill,
2006).
2.1.1 Characteristics of Microinsurance
International Association of Insurance Supervisors (IAIS) and CGAP Working Group on
Microinsurance (2007) identify the following characteristics of microinsurance;
a) As inclusive as possible:
While insurance companies tend to exclude low-income households, microinsurance schemes
generally strive to be inclusive. Since the sums insured are small, the costs of identifying high-risk
persons, such as those with pre-existing illnesses, may be higher than the benefits of excluding
them in the first place.
b) Grouping for efficiencies and access:
Group insurance is more inclusive and cost effective than individual coverage. Even though the
informal economy is frequently seen as disorganised, there are groupings available, such as
women’s associations, informal savings and credit groups, cooperatives, small business
associations and the like. Some micro insurers use these groups effectively by enlisting their
support in member selection and reducing insurance risks such as fraud, over-usage and moral
hazard.
c) Clearly defined and simple processes, rules and restrictions:
Insurance contracts are generally full of complex conditions, conditional benefits, and written in
strong legalese. Although the rationale for the fine print may be consumer protection, if the
consumers do not understand what is written, its very purpose is defeated.

9
Microinsurance contracts have to be in plain language, (preferably local language) and kept as
simple so that everyone has a clear understanding of what is covered and what is excluded. The
product and the processes associated must then be simple to sell and administer. Technology can
contribute to achieving this goal. However, in some cases, access to internet or other infrastructural
requirements such as an electrical supply may be scarce or inexistent in some point of services and
operations may have to be performed manually.
d) Wariness of customers:
In general, low-income households are apprehensive about insurance. Therefore, consumer
education is important to raise awareness about how insurance works and how it can benefit them.
Equally important, however, is upholding promises and fulfilling obligations, and creating positive
experiences with insurance services among the low-income segments of the population.
e) Limited data:
Even when there are relevant longevity, mortality and morbidity data, which is infrequent, these
tables do not typically reflect the risk of low-income households that are more exposed to a wider
variety of risks.
f) Premium collection:
Premiums must be efficiently collected, and with flexible payment terms that closely fit the income
streams of the low-income segment. For example, a small farmer may prefer to pay once or twice
a year, just after harvest, whereas a petty trader may prefer monthly or even weekly payments.
g) Alternative delivery channels:
Traditional brokers/ agents typically do not want to sell microinsurance with its relatively small
premiums (and thus small commissions). Thus, many microinsurance delivery channels are
unlicensed and unregulated agents. Often the regulator allows the insurer to take on the risk of
agents so may not need to be directly regulated. New delivery channels include a) developing a
group of “barefoot” agents from local markets dedicated towards this specific market segment; b)
using microfinance institutions, credit unions, and cooperative staff to sell basic microinsurance
products; c) selling microinsurance products through retailers, cell companies and other agencies
having access to low-income households (d) adapting the sales process to rely less on high cost
advice based models but more on clear and transparent disclosure.

10
2.2 Evolution of Microinsurance
According to www.microinsuranceNetwork-Microinsurance-A-Brief-History.htm visited on
22/03/2014, microinsurance is generally, but inaccurately, referred to as a new concept. It first
appeared as a new financial service within microfinance. It is only the term microinsurance that is
new. Ganguly (2010) states that, the evolution of insurance dates back as early as the
commencement of trade between two countries in England, especially between European
countries. During the transportation of goods, there were chances of the ship being drowned in the
rough sea conditions or attacked by pirates, leading to a huge loss to the party sending the goods.
The traders of England devised a way whereby the loss of goods would be compensated by every
trader putting in some amount as per their financial strength so that a single party may not be the
loser. In the late 1660’s, the London coffee shop of Edward Lloyd became a meeting place for
merchants and ship owner seeking insurance. As an aftermath of the great fire of London in 1666
that destroyed some 14000 buildings, marine insurance underwriters formed insurance companies
to offer fire insurance policies (http//:www.microinsuranceNetwork-Microinsurance-A-Brief-
History.htm visited 22/03/2014).
Microinsurance was not known before the year 2000. However they were products that predate the
product we know today. www.microinsuranceNetwork-Microinsurance-A-Brief-History.htm
visited 22/03/2014, highlights that sum of the early products include Industrial Life insurance, life
insurance policies with small sum insured and weekly premiums collected door to door was
marketed in the late 1800s by Prudential life Assurance Society in the United Kingdom and by
Metropolitan Life Insurance Company in the United States. Folksam General Mutual Insurance
Company was founded in 1908 by the co-operative movement in Sweden to provide simple fire
insurance policies on the contents of flats of low income workers and of co-operative shops.
According to Ingram and McCord (2011) the first definition appear to have been published in 1999
by David Dror as part of “Microinsurance: Extending Health Insurance to the Excluded”. In 2000,
the most comprehensive documentation to date on microinsurance was Warren Brown and Craig
Churchill’s two volume work, Insurance Provision in Low income communities. According to
www.microinsuranceNetwork-Microinsurance-A-Brief-History.htm visited 22/03/2014, the term
“microinsurance” was derived from natural developments from the older term “micro finance” and

11
the term was first used within the ILO and UNCTAD in Geneva in the mid 1990’s and in some
academic circles in the early 1990s.
2.3 Benefits of Microinsurance
According to Lloyds (2009) microinsurance has the same purpose as traditional insurance, to
allow consumers, whether they are individuals or businesses, to transfer their risks and purchase
the security they need to live their lives. Microinsurance also benefits the insurance companies.
They identify the business benefits as follows:
a) Diversification
Expanding business activities into new markets, new risks and new products are necessary for
portfolio diversification, and this applies to investments in microinsurance for a traditional insurer
based in developed countries. A microinsurance strategy can provide a sound basis for future
growth as it means diversifying into new regions with different exposures to natural disasters, into
economies of different demographic structures, and into new products such as weather index
insurance.
b) Reputational benefits
Engagements in microinsurance show a commitment to corporate social responsibility. They add
value to brand names in both traditional and new markets, and help justify initial investments in
microinsurance. There is little doubt that microinsurance improves the lives of its clients, it is
stated that in absolute terms, many microinsurance initiatives launched by governments, insurers
and other organisations to protect the lives, health and assets of the low income persons have made
a tremendous impact.
c) A laboratory for innovation
The challenges of microinsurance demand radically new solutions in products, procedures and
technology. The small transaction sizes in microinsurance products require highly cost-efficient
processes, from sales and premium collection to claims handling. The resulting innovations can be
implemented in traditional business lines, with substantial gains in efficiency. Some multinational
insurers, including Allianz and Zurich, have stated this as a reason for entry into microinsurance.
d) Market intelligence

12
Moving into new markets with a microinsurance initiative provides practical insights into business
environments, regulatory practice, and unknown economic and political structures. Research and
business in unfamiliar markets through microinsurance programmes may prepare the ground and
build the experience with staff for traditional insurance activities in these markets.
e) First mover advantages
Many of today’s microinsurance clients will be the middle class clients of tomorrow, part of the
“Burgeoning Bourgeoisie” in developing countries. Satisfied clients will remain with their
microinsurance provider, spread the word and demand more products as they move into the middle
class and appreciate the benefits of traditional insurance.
2.4 Microinsurance and Traditional insurance
According to IAIS and CGAP Working Group on Microinsurance (2007) most features of
traditional insurance largely apply to microinsurance as well, such as actuarial, accounting,
auditing, policy documentation, reinsurance, etc. However they are some features unique to
microinsurance as illustrated in Table 2.1:
Table 2.1: Difference between Traditional Insurance and Microinsurance
Traditional Insurance Microinsurance
Delivery
Channels
Sold by licensed agents or
brokers to the wealthy, the
middle class or companies that
typically understand insurance
Often sold by unlicensed
non-traditional agents to
low-income persons, preferably
in groups, requiring significant
product education
Controls Screening requirements may
include a medical examination or
other tests
If there are any screening
requirements, they are very
limited
in order to control costs/
Controls are appropriate to
the market
Premium
Collection
Typically regular annual, quarterly
or monthly payments
Frequent or irregular
premium payments

13
Matches cash flow cycles
Premium
Calculation
Based on age and other specific
risk characteristics
Group pricing with links to
other
services/
Diverse risk structures
Policies Complex policy document, many
exclusions, usually annual terms
Simple language, few or no
exclusions, terms appropriate
to market
Claims Claims process for large sums
insured may be quite difficult
Claims process for small sums
insured is simple and fast, yet
still
controls fraud
Source: McCord (2012)
2.5 The Demand for Microinsurance
Poor people struggle endlessly to improve their lives. It is a slow and gradual process marked by
tentative advances. Continually bombarded with financial pressure, low income households find
that shocks can easily erode their hard earned gains (Cohen and Sebstad, 2006). Sebstad et al
(2006) argues that, the demand for microinsurance grows out of the risks and risk management
strategies of low income households.
2.5.1 Socioeconomic Profile of Microinsurance Clients
Allianz AG et al (2006) identify the following characteristics for the microinsurance clients;
a) They typically live in households of five or more, sharing income and access to financial
services. This has important implications for access to microinsurance. One member, who
has access to the insurer, can purchase policies on behalf of another household member.
b) Agricultural labour is the main source of income. The implications of this are that much of
the income is irregular and seasonal. All income derives from agriculture as households
tend to pursue multiple livelihood activities with off-farm income as a component.

14
c) The group’s poverty means that they present a higher than average risk profile for many
types of insurance, e.g., lack of sanitation, lack of access to clean water, hazardous working
conditions and poor nutrition imply higher rates of death and disease.
d) Small rural communities often have better internal surveillance than large urban sprawls,
and so there may be opportunities for controlling fraud.
e) Low levels of literacy imply that marketing needs to be done without written media: for
example, film, radio and word of mouth.
2.5.2 Prioritising Risks
Vulnerability is closely associated with poverty and can be described as the ability of individuals
and households to deal with risk (Cohen and Sebstad, 2006). The poor own very few assets. Many
of the rural poor own their dwelling and the land that it is constructed on. Income generation for
the landless poor is largely a function of daily agricultural labour rates and the number of days
such work is available (Allianz AG et al, 2006). Some of the risks prioritised by the poor in
different counties are shown in Table 2.2:
Table 2.2: Priority Risk in selected Countries
Country Priority Risk
Uganda Illness, death, disability, property loss, risk of loan
Malawi Fear of death, especially in relation to HIV/AIDS, food insecurity, illness,
education
Philippines Death, old age, illness
Viet Nam Illness, natural disaster, accidents, illness/death of livestock
Indonesia Illness, children’s education, poor harvest
Lao P.D.R. Illness, livestock disease, death
Georgia Illness, business losses, theft, death of family member, retirement income
Ukraine Illness, disability, theft
Bolivia Illness, death, property loss including crop loss in rural areas
Source: Churchill (2006)
2.5.3 Risk Management

15
Sebstad et al (2006) argue that, in the absence of insurance, poor people often patch together
resources from multiple sources to meet expenses related to ill health, death of a family member,
property loss, or other unexpected shocks. However, these resources usually are not enough to
fully cover their losses and over time they become over used, less accessible and more expensive,
further limiting the ability of poor people to manage risks. The challenge for microinsurance is to
turn risk management from a reactive to a proactive process. McCord (2012) adds that, the
financial risks that people face and how they respond to them are often different from market to
market, and they are influenced by economic, social, religious, environmental, cultural and
political factors. Some of the ways to manage risk are shown in Figure 2.2:
Figure 2.2: Risk Management Strategies.
Source: McCord (2012)
a) Avoid Risk (Conservatism)
Low-income people tend to be seriously risk-averse, leading to missed opportunities. Often they
will simply not choose options that increase their level of household risk (McCord and Osinde,
2003). Ex ante (preventive) strategies that are directed at preventing the occurrence of emergencies

16
and also lower exposure to risk: employment diversification, income generating measures, skills
training programmes for selected groups, promotion of the use of pesticides to reduce the risk of
crop failure, promotion of cattle inoculation and various preventive health measures (Allianz AG
et al, 2006).
b) Retain risk
Retaining risk by borrowing, using savings, reducing “discretionary” cost such as nutrition and
schooling and selling productive and non-productive assets when faced with a shock (McCord,
2012). In another publication, McCord and Osinde (2003) argue that, most people retain at least
some risk because it is simply not cost effective or is prohibitive for them to access other means.
In using this strategy, low-income people will try to save or develop potential lending relationships
in advance of the occurrence of the risk event. Once the event has occurred, they will access these
relationships, reduce consumption or otherwise restrict expenses, and sometimes liquidate
personal and productive assets. Financial institutions can assist people with this strategy.
c) Reduce Risk
When risk is unavoidable, they do what they can to minimise it. The focus here is to reduce overall
risk and this involves forethought and planning. Where a shop is flimsy, the owner might transport
valuable items to her home at night. A small manufacturer might chain his machine to a post to
keep thieves from taking it or at least making it more difficult for them (McCord and Osinde,
2003).
d) Share Risk
Borrowing from family and friends is widely acknowledged as a strategy for meeting unanticipated
shock (Cohen and Sebstad, 2006). Allianz AG et al (2006) also add that, families, households and
other informal sources of assistance play a key role managing social risk. These mechanisms are
very restricted in scope, however, as the financial consequences of a risk are often greater than
household assets. Cohen and Sebstad (2006), continue to argue that, the source of support also
comes with the expectations of reciprocity which can create longer term pressure. Sharing risk is
very common in East Africa and includes methods where small groups gather to assist a member.
These include the munno mukabis (“friend in need” societies) of Uganda, the harambees (“pulling
together”) in Kenya and the burial societies of Tanzania, where people come together to help

17
someone through a risk event. They thus share their risk among the other members of their group
(McCord and Osinde, 2003).
e) Social Protection
Social protection is much more than a risk management instrument for individuals. It is a
comprehensive, collective tool to reduce poverty, inequality and vulnerability. It promotes equality
and solidarity through redistribution. It provides fair access to healthcare, income security and
basic social services. However, more than half of the world’s population does not benefit from any
form of social protection (Jacquier et al, 2006).
McCord cited in Cohen and Sebstad (2006) observed that with low income households bearing as
much as 80% of their health costs in some countries, many poor people see an obvious opportunity
for microinsurance.
f) Transfer Risk
The transfer of risk to another entity is the essence of insurance. In this case, the household
experiences a low periodic expenditure (premium) that covers a significant insured risk event
without seriously affecting their household or their social groupings (McCord and Osinde, 2003)
2.6 Supply of Microinsurance
According to Lloyds (2009) a variety of businesses and organizations are engaged in
microinsurance and they often join forces in diverse, and at times, innovative ways to deliver
services to clients. Typical models include the following:
a. Partnerships between commercial insurers and MFIs and other delivery channels
b. Regulated insurers that serve low income clients directly, often with separate agents
c. Healthcare providers offering a package which includes both insurance and
healthcare services
d. Community-based organizations (CBOs) that pool risks and/or funds of members
e. MFIs that offer insurance to their clients and act as risk carriers themselves
f. Government-subsidized insurance schemes
a) Insurers

18
Lloyds (2009) explains that both national and multinational insurers set the price for products,
carry the risks and pay claims. Their products may be developed with distributors, which, in many
cases, initiate the collaboration. Insurers may be regulated or unregulated. Unregulated
microinsurance providers are usually small and tend to be community-based organizations and
NGOs. Mutuals, run by professional insurance staff, are normally regulated and supervised,
sometimes under a Cooperatives Act.
Most of the large international insurers are already involved in microinsurance in some way, either
offering microinsurance products or entering partnerships with local insurers and delivery channels
in developing countries. Several multinational insurers, including Zurich, AIG and Allianz, now
have microinsurance units at their head offices to focus on expanding microinsurance business
throughout their networks (Lloyds, 2009).
b) Reinsurers
Many of the world’s leading reinsurance companies are involved in microinsurance initiatives. In
some cases they provide support in product development, in particular for index-based insurance;
in others they reinsure microinsurance schemes (e.g. Munich Re, which has entered a partnership
with a Columbian insurer, Sudamericana, to support microinsurance). So far, the role of reinsurers
has been relatively limited, as most microinsurance is still rather basic. Insurers argue that the
covers are so low that even significant losses would not surpass the deductibles on their reinsurance
agreements. This is likely to change as products become more sophisticated and market penetration
increases (Lloyds, 2007; Munich Re, 2009 and Ferguson, 2008).
c) Microinsurance delivery channels
Delivery channels are essential for bringing products to clients for whom insurance may be
fundamentally new. MFIs, NGOs, post offices, employers and other organizations with large
networks have the potential to reach significant numbers of clients at low cost.
Because microinsurance premiums are small, delivery channels tend more often to be institutions
rather than individual agents. Specialized brokers, such as the Gates Foundation funded
MicroEnsure, or commercial brokers such as Aon in Bolivia, act as mediators between insurers
and institutions wishing to provide insurance to their members or clients. Sometimes institutions
that act as delivery channels take on the role of the primary insurer – an example being some MFIs
which offer life insurance and keep the risk on their own books (Churchill, 2006 and Lloyds, 2009).

19
2.6.1 Major Microinsurance Products in Supply
a) Life insurance
Life insurance is the most prolific microinsurance product in developing countries according to
the number of policies sold. Most of this is credit life insurance, typically compulsory and covering
the outstanding balance of a loan on the death of a borrower (Enarsson et al, 2006). Lloyds (2009)
adds that, overall, most life microinsurance products are short term. Term life insurance is easy to
provide, and has already proved to be profitable. Many MFIs offer mixed credit and life insurance.
An example is the microfinance arm of ABA (Alexandria Business Association) in Egypt: if a
borrower dies, his or her family receives the full initial loan sum less the outstanding credit. There
is high demand for life insurance that provides more substantial coverage in case of death of the
breadwinner. In many African countries, for example, life insurance that covers funeral costs is
very popular.
b) Health insurance
Churchill (2006), Maleika and Kuriakose (2008) and Lloyds (2009) noted that almost all surveys
have shown that health insurance is the product most demanded by low income groups. Health
issues not only mean treatment expenses, but also result in income losses, not only for the affected
person, but also for family members who, whilst providing care, may not be able to engage in
productive work. The health microinsurance products that are available are limited, relatively
small in terms of lives covered, and in some cases, donor-funded and subsidized. Nevertheless a
number of schemes exist. Outpatient, hospitalization and comprehensive policies are available in
several countries. Variations include hospital cash models, which provide a fixed sum per day in
hospital, and targeted benefit models, which provide coverage for a precisely defined list of
treatments.
c) Accidental death and disability
Demand for this coverage is high and this is also a common microinsurance product. Accident
cover is one way for insurers that are not life insurers to legally address a type of life cover.
Disability is more difficult to manage with efficient and cost effective controls. Disability is often
linked with death cover in personal accident products. Frequently permanent and temporary
disability covers are provided. Controlling the risks on these has proven costly, especially for
temporary disability, because of the potential for fraud. Dismemberment microinsurance is

20
possible and confirmation of the insured event is clearer, but use of this product is limited. When
linked to mandatory credit life insurance, often the policyholder does not even know that these
benefits exist (Lloyds, 2009 and IAIS, 2007).
d) Property insurance
Lloyds (2009) argues that, demand for property insurance tends to be much lower than for health
and life insurance. Providing coverage for fire, theft and flood is difficult in low income markets.
Some of the challenges include: lack of title deeds for informal housing, high claims handling costs
and the difficulties of managing fraud risks.
e) Index insurance
Index insurance is being proposed as a solution to the problems of property insurance, especially
for drought in the agricultural sector and catastrophic risks such as floods, earthquakes, and
typhoons. For a holder of an index policy, payments do not depend on his or her individual losses
but on an objective index such as rainfall level or earthquake magnitude. Once an index is
calibrated and correlates well with actual losses, underwriting and claims verification costs for the
insurer are minimal and moral hazard and fraud are virtually eliminated (Lloyds, 2009 and IAIS,
2007).
2.7 Regulation of Microinsurance
According to Weidmaier-Pfister (2004) microinsurance regulation is an emerging field. The
benefits of regulation are understood to some extent and stakeholders are interested, but in general,
the level of knowledge on this topic is inadequate.
2.7.1 Current Regulatory Reforms Targeting Microinsurance
According to a survey conducted by Finmark Trust in 2013, they noted that ten SADC member
states were in process of developing microinsurance regulatory frameworks. The frame work will
provide regulatory frameworks to facilitate greater access to insurance products in their markets.
The findings by Chamberlain et al (2013) in different SADC countries are presented below:
a) Botswana
Botswana is in the process of reviewing its entire insurance regulatory framework. A draft bill -
the Insurance Industry Bill (2011) - and draft regulations have been prepared. Unlike the current

21
Insurance Industry Act (1991), which will be repealed once the new Law is enacted, the draft Bill
provides for microinsurance as a new category of insurance (cutting across product lines) and for
micro insurers who will be licensed to provide only microinsurance policies. The Bill creates
microinsurance as a new product category, but leaves the details to be fleshed out in regulation.
b) Lesotho
The current Insurance Act (1976 with amendments 1981, 1983 and 1985) is outdated and there are
plans to modernise it. Whilst Lesotho does not specify microinsurance in its legislation, the
Reserve Bank of Lesotho (RBL) has earmarked a new dedicated role for microinsurance within
the insurance supervision department.
c) Malawi
The new Insurance Act was adopted in 2010 (Act no. 9 of 2010). However, the new Act does not
make provision for microinsurance. Instead, microinsurance is provided for in the Microfinance
Act (Act 21, 2010) and its associated regulations (Non-Deposit Taking Microfinance Institutions
Directive, 2012).
d) Mozambique
Mozambique initiated a review of its insurance legislation in 2008 with a view to align legislation
more closely with IAIS principles. The result is an enacted Insurance Act (Decreto-Lei No.
1/2010). The Act includes a chapter that is dedicated to microinsurance with further provisions
weaved throughout the Act. Regulations are yet to be developed.
e) Namibia
Efforts have been made to reform the non-bank financial services industry. An initial draft bill
consolidating and reforming various financial services was published in 2004. After a process of
consultations and amendments, The Financial Institutions and Markets Bill (2012) creates the
space for regulations to be developed for microinsurance. The bill also proposes concessionary
capital requirements for micro insurers.
f) South Africa
The National Treasury published a discussion paper in 2008 on the future of microinsurance in
South Africa. After consultations, this led to the adoption of The South African Microinsurance
Regulatory Framework Policy (National Treasury, 2011). A new MI bill is currently being drafted

22
to give effect to the approved policy. The FSB has established a microinsurance department to deal
with the implementation of the forthcoming bill.
g) Swaziland
Insurance in Swaziland is governed by the Insurance Act of 2005, along with the Regulations and
Directives (2008) issued under the Act. The insurance industry is regulated by the Office of the
Registrar of Insurance and Retirement Funds (RIRF). Following the enactment of the Financial
Services Regulatory Authority (FSRA) Act (2010), the FSRA is now set up as an umbrella non-
banking financial services regulator. The RIRF is currently making amendments to the Insurance
Act with the main rationale to align the Insurance Act with the FSRA Act, as well as continuous
alignment to international standards. The result thus far, a draft Insurance Bill (2011), proposes
microinsurance provisions for the Swaziland market. In anticipation of the adoption of the new
Insurance Act, dedicated MI regulations are being prepared.
h) Tanzania
In 2009, a new and revised Insurance Act was enacted. Associated regulations have been proposed
with a specific focus on microinsurance, namely The Microinsurance Regulations (2012), but these
have not yet been promulgated.
i) Zambia
Insurance regulation in Zambia falls under the jurisdiction of Pensions and Insurance Authority
(PIA), which was established in 1997. The new Act will have a more specific focus on
microinsurance, classifying it as a separate category of insurance next to life and general. A draft
Microinsurance Bill was prepared with donor funding, however the PIA found it unsuitable to
Zambian circumstances and is now considering further options.
j) Zimbabwe
The insurance market in Zimbabwe is regulated by the Insurance and Pensions Commission
(IPEC). IPEC is in the process of revising the Insurance Act (2007). One of the key drivers of the
revision is compliance with international standards within the SADC region (including the
introduction of a risk-based framework). The drafting of microinsurance regulations has been
initiated.
2.7.2 Role of Regulation

23
Weidmaier-Pfister (2004) has identified a number of roles that regulation can play. She explains
that regulations define the requirements of an insurer, provide consumer protection through the
supervision of insurers to safeguard their solvency and thus shield the customer from buying
insurance from an unsuitable company. More specifically, insurance regulations;
a) protect customers from misleading sellers (by regulating the delivery channel, e.g. through
standards for agents/licensing of agents and brokers) and unfair claims practices; for example
by requiring disclosure and by regulating complaints; or by regulating rate setting/pricing
(some jurisdictions have limits for rate, or require prior approval); regulating policies
(forms/contracts, exclusions);
b) protect the financial viability of insurers, e.g. by requiring standards for qualifications,
solvency, performance, risk limitation, disclosure, reserves, reporting (periodicity, accounting
and information systems), auditors, investment restrictions;
c) define the general features of insurance, e.g. the provision of insurance, the types of products
and the different types of insurance (e.g. short- and long-term; national or cross-border
operations; life insurance and general insurance);
d) define duties and responsibilities, e.g. the persons (natural or judicial) permitted to engage in
insurance activities, ownership (management, domicile, holdings, foreign investors8); the
public sector agency responsible for insurance regulations and compliance; sanctions and
penalties for non-compliance or omission;
e) define the conditions for the entry and exit of players in the market:
i. Entry rules: Registration, formation and licensing of insurers like initial financial and
management capacities, products, etc.,
ii. Exit rules: Cessation of operations (winding up),
f) Guarantee a level playing field in the market, i.e. guarantee that equal conditions for all
operators exist in the market and that competition is not distorted (e.g. by permitting an insurer
to operate outside the law while the regulated competitor has to bear significant costs because
he is licensed and supervised).
2.7.3 The Implication of Regulation on Microinsurance
According to Wiedmaier-Pfister (2004) regulation can affect the provisions of microinsurance in
manifold ways. Consequently, these regulations can (unintentionally) restrict the provision of

24
insurance to low income markets. Wiedmaier-Pfister (2004) goes on to state the implications
below:
a) Minimum capital requirements are too high, compared to the small amounts of the
policies, and for locally organised small microinsurance institutions.
Capital requirements encourage financial stability. Requirements of millions of dollars are
common, but they discourage established insurers from offering services to low income
households whose policy sizes are only in the tens or hundreds of dollars. Large insurance
companies are not interested in serving this market because they do not believe that the volume of
business will earn sufficient return on investment. There have been cases where governments (e.g.
Cruceña, Bolivia) increased minimum capital requirements, forcing a viable insurance provider to
the low-income market to cease operations.
b) Requirements for agents are either too low (anybody without prior formation can act as
agent), or too restrictive.
Often, insurance laws require several years of experience, or high qualifications, which makes it
difficult for a small and young company to act as an agent. Or they require that an agent be a
natural person (not an NGO).
c) The definition of the role of the insurer (= sole business line) is another requirement that
affects microinsurance providers.
In this case, a financial institution that wants to offer insurance services, is not allowed to operate
as an agent; it can do so only with separate staff (and counters), which makes it expensive and
unattractive. For them, the low delivery costs achieved if insurance provision is combined with
other financial services (such as savings and credit) is a critical element. It is difficult for a MFI
to maintain separate sales staff and offices. However, some experts stress that bookkeeping of
insurance and banking assets must, at least, be kept separate (to ensure that savers are not exposed
to insurance risk, and policyholders are not subject to credit risk). Others consider this entirely
inadequate; they recommend establishing separate legal entities and instituting legal barriers to
limit investments by the insurance arm in the loan portfolio of the MFI.
d) Regulations on policy details can also restrict access to low-income markets.

25
The client group, often illiterate and not familiar with these procedures, can barely understand long
and detailed insurance contracts using legal language. To solve this, simple contracts and
innovative, pro-poor oriented public information campaigns are important for microinsurance.
e) Semi-formal insurance schemes are not covered by conventional insurance regulations.
Semi-formal schemes offer microinsurance services, but circumvent regulations. As a
consequence, their institutions and customers are not protected. Semiformal and informal
insurance schemes have been part of community life in many countries for centuries. Since large,
commercial insurers are not willing to enter this market, these schemes remain important; they are
often the only service provider. They are not prudentially regulated (and supervised), but their
financial stability is nevertheless of concern. Conceptually, these schemes should be integrated
into the formal financial system, be it in the form of agents or providers. However, not each and
every semi or informal insurance provider has to be, or can be integrated. There will always be
schemes which are small and member-based, and for which the government cannot assume
responsibility. This would be just too costly, for both the supervisor and the institution.
f) Reinsurance is a serious constraint for micro insurers.
Reinsurance is insurance for insurance companies, and a reinsurer can enter into a reinsurance
arrangement with only a properly licensed direct insurer. Most micro insurers, informally
organized and without licence from the regulator to conduct the insurance business, have no access
to reinsurance. In some countries it may be possible to link and partner one or more micro insurers
with an existing licensed insurance company, which may then seek reinsurance cover on their
behalf from a reinsurer. In other countries, there may be a need for the regulator to come up with
some concessionary approaches to make sure that micro insurers are not left exposed to risk
beyond their capacity.
2.8 Summary
Microinsurance is a concept still in its infancy; more research still needs to be carried out to shed
light on its various aspects. A lot of interest though has been generated on the subject especially
in recent years which have seen a lot of research being carried out. The issues pertaining to
regulation still require a lot more work as seen from the apparent lack of consensus on how
microinsurance should be regulated. Available literature has however been invaluable to this
research and has shed more light for the researcher.

27
Chapter 3
ResearchMethodology
‘Without trouble nothing can be successful.’ - Sophocles
3.0 Introduction
Shuttleworth (2008) describes research as any gathering of data, information and facts for the
advancement of knowledge. This chapter focuses on how the research was carried by giving a
sketch out of the research design, sampling techniques and methods used for collecting data. It
outlines the framework which the researcher followed in the gathering data and the instruments
used to collect the data are each explained in detail giving their advantages and disadvantages.
The process of inspecting, cleaning, transforming, and modelling data with the goal of highlighting
useful information, suggesting conclusions and decision making was also included in this chapter.
3.1 Research Design
Carriger (2000) indicates that research design is the strategy, the plan, and the structure of
conducting a research project. A research design encompasses the methodology and procedures
employed to conduct the research. The design of a study defines the study type, research question,
hypotheses, independent and dependent variables, experimental design, and, if applicable, data
collection methods and a statistical analysis plan. Data was collected from selected poor rural
households that were deemed to be a true and unbiased representative of the country’s rural poor
population. A research design is a framework or blueprint for conducting the research project
(http://www.scribd.com/doc/6923070/Research-design visited on 25/03/2013). A descriptive
survey research design was used as it is suitable for investigating public opinions. Interviews
allowed the researcher to probe the participants for more information.
3.2 Study Population
According to Day (2008) the study population should be defined in advance stating unambiguous
inclusion criteria and the impact that these criteria will have on study design, ability to generalize,
and participant recruitment must be considered. Population refers to all the organisms of the same
group that are located in the same area. Population study can be defined as a study of a group of
individuals taken from the general population who share a common characteristic such as in the

28
same type of business. According to Zimbabwe National Statistics Agency (2012) Umzingwane
has a population of 62 990 people. The study had two set of populations consisting of 62 990
people from Umzingwane and 28 short term insurers registered with IPEC.
3.3 Sampling
Babbie (2001) states that a sample is a subset of the population being studied. It represents the
larger population and is used to draw inferences about that population. A sample must be drawn
in such a way that it is representative of the population. According to Polit and Hungler (1991)
sampling is a process of selecting a portion of the population to represent the entire population.
3.3.1 Sampling Techniques
There are two types of sampling techniques which are random sampling that gives each element
of the population an equal chance of being selected for the study and non-random sampling which
does not give each element an equal chance of being selected to the sample.
a. Random Sampling Method
Saunders et al (2003) states that all elements in a population have an equal chance of being selected
to the sample. It is regarded as the best way of coming up with a representative sample. Probability
sampling includes, random sampling, stratified sampling and cluster sampling. Random can be
called probability sampling and it is a sample in which every element in the population has an
equal chance of being selected.
According to www.cnr.uidaho.edu/css506/506_Notes/Sampling%20techniques.doc visited on
26/03/2013, commonly used random sampling methods are simple random sampling, stratified
random sampling, cluster sampling and systematic sampling. Simple random sampling involves a
random sample from whole population and it is highly representative if all subjects participate the
ideal. Stratified random sampling involves random sample from identifiable groups or subgroup
and ensures that specific groups are represented even proportionally in the samples by selecting
individuals from strata list. Cluster random sampling includes random samples of successive
clusters of subjects until small groups are chosen as units and it is possible to select randomly
when no single list of population members exists.
b. Non-Random Sampling

29
According to Trochim (2006) non-random sampling can also be referred to as non-probability
sampling and it can be divided in two broad types accidental and purposive. Most sampling
methods are purposive in nature because we usually approach the sampling problem with a specific
plan in mind. The most important distinctions among these types of sampling methods are the ones
between the different types of purposive sampling approaches.
3.3.2 Sample Size
Sample size is the number of observations in a sample (Evans et al, 2000). Bartlett et al (2001)
states that, the sample has to be representative of the population and defines a sample as “a subset
of a population”. According to Curry cited in Yount (2006) a sample size rule of thumb in Table
3.1 should be used when carrying out a research
Table 3.1: Rule of thumb
Size of Population SamplingPercent
0-100 100%
101-1000 10%
1001-5000 5%
5001-10000 3%
10000+ 1%
Source Yount (2006)
The sample for Umzingwani according to the rule of thumb was 630 individuals. According to
ZimStats (2012) average size of household is equal to 4.4 individuals. From this average a total of
143 questionnaires were distributed to every household of the 630 individuals.
According to Haralambos and Halbon (1990) a sample size should be more than 33% of the target
population. The sample size consisted of 10 randomly selected respondents chosen from a target
population of 28 registered short term insurers with one (1) questionnaires submitted to each
company for completion. A total of 10 questionnaires were distributed for the second set of
population.
3.4 Research Instruments and Data Collection

30
Pierce (2009:159) states that, “a research instrument is a survey, questionnaire, test, scale, rating,
or tool designed to measure the variables, characteristics or information of interest, often a
behavioural or psychological characteristic. Careful planning for data collection can help with
setting realistic goals. Data collection instrumentation such as surveys, physiologic measures or
interview guides, must be identified and described. Using previously validated collection
instruments can save time and increase the study's credibility. Once the data collection procedure
has been determined, a time line for completion should be established.”
Creswell (2003) mentions that data collection steps includes setting of the boundaries for the study,
collecting information through unstructured or semi-structured observations and interviews,
documents and visual materials as well as establishing the protocol for recording information. In
this research project the researcher used the survey design in which data was collected by way of
questionnaires and interviews. The data sources can be divided into primary and secondary data
sources.
3.5 Primary Data
Primary data means original data that has been collected specially for the purpose in mind. It means
someone collected the data from the original source first hand and the data has not been published
yet and is more reliable, authentic and objective. It has not been changed or altered by human
beings therefore its validity is greater than secondary data (Bryman and Bell, 2003). According to
Forshaw (2000) primary data are those that the researcher has collected himself/herself. The
primary data sources the researcher used in doing this research were questionnaires and personal
interviews.
3.5.1 Questionnaires
According to Weijun (2008) questionnaire is a general term to include all techniques of data
collection in which each person is asked to respond to the same set of questions in a predetermined
order. Questionnaires can be used for descriptive or explanatory research. Descriptive research
will enable the researcher to identify and describe the variability in different phenomena whilst
explanatory or analytical research will enable the researcher to examine and explain relationships
between variables, in particular cause and effect relationships. The researcher used the explanatory

31
research questionnaire for all representatives of the rural poor and short term insurance companies
which consisted of structured and open ended questions.
Advantages of Questionnaires
a. The responses are gathered in a standardised manner which makes them more objective.
b. It is quick to collect information.
c. Potentially information can be collected from a large portion of a group.
Disadvantages of Questionnaires
a) Occur after the event, so participants may forget important issues.
b) Not possible to explain any points in the questions that participant might misinterpret since
they are standardised.
c) Open ended questions can generate large amounts of data that can take a long time to
process and analyse.
d) Respondents may answer superficially especially if the questionnaire takes a long time to
complete (Milne, 1999).
3.5.2 Personal Interviews
Burns (2000) describes an interview as a verbal exchange in which an interviewer tries to elicit
information, beliefs or opinions from another person. Personal interviews were used extensively
due to the nature of the research, which involved data collection through face to face interviews
from insurer’s representatives particularly from the finance and underwriting departments. Since
the interviewees were busy with other company commitments. The researcher had to save on time
and used a structured interview where a set of prescribed questions for the interviewee had to be
set. A total of 6 out of 10 interviews scheduled were successfully held at Zimre Holdings, RM
Insurance, Allied Insurance, Zimnat Insurance, Eagle Insurance and Sanctuary Insurance.
Advantages
a) The researcher was also able to prompt for answers by providing a list of possible answers
from which the respondents would chose.

32
b) The researcher can check the respondent eligibility before the interview is started.
c) The interviewer can encourage the respondents to answer as fully as possible and check as
appropriate, that the question is correctly understood.
d) Materials that need to be shown to respondents can be properly presented.
e) Response rate are consistently higher than for other methods of questionnaire
administration.
Disadvantages
a) Time consuming both to contact and analyse.
b) Less expensive in terms of funds and time.
c) Biased responses from the interviewees because of the researcher’s presence.
3.6 Secondary Data
Secondary data is the data that have been already collected by or readily available from other
sources http//www.secondary-data.com.htm visited on 2/04/2013). According to Forshaw (2000)
a secondary data research project involves the gathering or use of existing data for purposes other
than those for which they were originally collected. These secondary data may be obtained from
many sources, including literature, industry surveys, compilations from computerized databases
and information systems, and computerized or mathematical models of environmental processes.
This was the most helpful method which accounts for much of the data used especially in the
literature review and the analysis sections of this research project.
3.6.1 The Internet
The Internet is a networking infrastructure connecting millions of computers together globally,
forming a network in which any computer can communicate with any other computer as long as
they are both connected to the this facility. Most of the data on microinsurance was obtained on
the internet making it an important form of data for this research especially when reviewing
literature.
Advantages

33
a) Information on internet is continuously updated giving the researcher a reliable and
accurate source of data.
b) It is user friendly since all references are provided electronically.
c) Internet gives a wide range of information on any topic on study.
Disadvantages
a) Some of the information is vulnerable to exaggeration by computer expects.
b) Internet is vulnerable to viruses which can corrupt some of the information before the
researcher compiles the data.
c. Congestion of the network server can affect the levels of the internet speed and efficiency
since the more the congestion the slower the rate of response on speed and efficiency.
3.6.2 Textbooks and Journals
Textbooks and journals are manuals of instruction or standard books and codes in any branch of
study. Textbooks are only published in printed format and some online mainly known as electronic
books, or e-books. The researcher had to use different textbooks on microinsurance and the
Insurance Act of Zimbabwe in determining the regulation requirements on microinsurance in the
short term insurance industry.
3.7 Data Analyses and Presentation Plans
According to http://www.answers.com/topic/data-analyses visited on 2/04/2013 data analyses is a
process of inspecting, cleaning, transforming, and modelling data with the goal of highlighting
useful information, suggesting conclusions, and supporting decision making. Data analysis has
multiple facets and approaches, encompassing diverse techniques under a variety of names, in
different business, science, and social science domains.
The researcher evaluated data using analytical and logical reasoning to examine each component
of the data provided. Data from various sources such as IPEC, rural poor and short term insurance
companies was gathered, reviewed, and then analysed to form a conclusion. Variety of data
analysis methods was used in this research such as data mining, text analytics, and data

34
visualizations. Data mining is a particular data analysis technique that focuses on modelling and
knowledge discovery for predictive.
3.8 Summary
This chapter describes various methods used by the researcher in collecting data needed to
demonstrate the main objective of the research. Data was collected from both primary sources
using interviews and questionnaires and secondary data using internet, textbooks and journals. The
next chapter analyses and presents the data gathered from these sources.

35
Chapter 4
Data Presentation, Analysis and Discussion
‘Simplicity a very rare thing in our age.’ – Ovid
4.0. Introduction
This chapter focuses on the analysis and presentation of data gathered from the field research. The
researcher used the circulated questionnaires and interview results as the source of data referred to
in this analysis. Data was analysed using descriptive statistics and raw data was presented by means
of pie charts, graphs and tables. In this report, the researcher gathered information relating to the
demand and supply capacity of microinsurance products, and the nature of the regulatory
framework in Zimbabwe.
4.1 Response Rate
The researcher distributed a total of 143 questionnaires to Umzingwani households and 100 usable
questionnaires were returned giving a 70% response rate from the rural poor. This was possible
because the researcher embarked on pick and drop strategy during the administration of these
questionnaires. The researcher also distributed a total of 10 questionnaires to insurer’s
representatives, and 8 usable questionnaires were returned giving an 80% response rate from the
short term insurance companies. A total of 6 of 10 scheduled interviews were also conducted
giving a response rate of 60%. The responses of the interviews were presented together with the
responses from questionnaires as the interviewees completed the questionnaires too. The overall
response is analysed in table 4.1 below:
Table 4.1: Response Rate
Category Number of Questionnaires Response Rate
Dispatched Returned
Rural Poor 143 100 70%
Insurers 10 8 80%
Total 153 108 71%

36
Source: Primary Data
4.2 Data Analysis from the Rural Poor
The following section will present data collected from the rural poor.
4.2.1 Income Levels
The question was designed to ascertain the socio economic profile of the respondents. 97% of the
respondents had an income below $350 which is below the poverty datum line. 3% of the
respondents had an income above $350. The findings are presented in figure 4.1 below:
Figure 4.1: Respondent Income Levels
Source: Primary data
4.2.2 Familiarisation with the concept of insurance
The question was included to establish whether the respondent were familiar with the concept of
insurance or not. 78% of the respondents said that, they were not familiar with the concept of
insurance and 22% said they were familiar with the concept as illustrated in Figure 4.3 below:
80%
10%
7%
3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
$1-$150 $151-$250 $251-$300 Above $300

37
Figure 4.3: Familiarisation with the concept of insurance
4.2.3 Willingness to buy insurance policies
The question was aimed at assessing the willingness of the rural poor to purchase insurance
policies. Most of the respondents answered that they were not willing to buy insurance. 45% of
the respondents were willing to buy insurance whereas 55% were not willing to have a policy. The
findings are presented in Figure 4.4 below:
22%
78%
Yes
No

38
Figure 4.4: Willingness to buy insurance
4.2.3 Reasons Cited for not taking up insurance
The question was aimed at finding out the major reasons most rural poor were not be willing to
take up insurance policies. 40% of the respondents deemed insurance expensive, 30% deemed it
an irrelevant product, 20% cited that it was because of the fact that insurer do not want to pay
claims and 10% cited that the policies had too many exclusions. The major reasons cited are
presented below in Figure 4.5:
45%
55%
Yes No

39
Figure 4.5: Reasons for not taking up insurance
4.2.5 Expected Claim turn around period.
The question was included to enable the researcher to assess the claim settlement period expected
by the insured for their claims. Interestingly 87% of the respondents said that they expect their
claims to be settled within a week, 8% within two weeks, 3% within three weeks and only 2%
within a month. The results are presented in Figure 4.6 below:
Expensive, 40%
Irrelevant Product,
30%
Insurer do not pay
claims, 20%
Too manyexclusions,
10%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%

40
Figure 4.6: Expected claims turn around period
4.2.6 Major Risks and coping strategies identified by the respondents
The question was the most important in the questionnaire. It was included to identify the risks and
coping strategies used by the rural poor. The respondents were asked to identify major risk and
coping strategies they use. Most of the respondents identified illness, stock theft, crop failure,
failure to repay loans, flooding and fire as their major risks. The findings are presented in Table
4.2 below:
Table 4.2: Major risks and coping strategies
Risk Coping Strategy
Illness Deplete savings, borrow from friends
Stock theft Accumulate new livestock
Crop failure Wait for donor funding and well-wishers
Failure to repay loans Pledge assets
Flooding Wait for donor funding, deplete savings
Fire Rebuild the burnt hut
One Week, 87%
Two Weeks, 8%
Three Weeks, 3% One Month, 2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Period

41
4.2.7 Willingness of the rural poor to pay premiums with their produce
This question was aimed at evaluating the possibility of premiums being payable by the produce
of the rural poor. 99% of the respondents were willing to pay their premiums with farm produce.
A mere 1% highlighted that they were not willing to pay premiums with farm produce. The
findings are illustrated in figure 4.7 below:
Figure 4.7: Willingness to pay premiums with farm produce
4.3 Responses from Insurers
The following section present data collected from insurance companies.
4.3.1 Organisations offering products targeted primarily at the rural poor.
This question was aimed at determining the organisations offering microinsurance products
primarily targeted at the rural poor. There are basically three organisations in the industry offering
microinsurance products. These three represent 30% of the population sample used for the
research. 70% do not offer microinsurance products. The findings are presents in figure 4.8 below:
99%
1%
Yes
No

42
Figure 4.8: Organisations offering microinsurance products.
4.3.3 Products currently available on the market
The Zimbabwean insurer are still sceptic about offering microinsurance products. Of the 30% that
confirmed that they offer microinsurance products, the products are Weather Index, EcoFarmer
and Hospital Cash Plan. The products identified are presented in table 4.3 below:
Table 4.3: Products currently available on the market
Class Product
Agriculture Weather Index, EcoFarmer
Health Hospital Cash Plan
4.3.4 Premium level being charged
The question was include to ascertain the premium levels being charged for microinsurance
products in the industry. 67% of the respondents said that they charge premiums in the range of
$1-$10, no insures charge premiums between $11-$15 and 33% charged premiums above $15. The
results are presented in figure 4.9 below:
70%
30%
No
Yes

43
Figure 4.9: Premium levels being charged
4.2.5 Flexibility of premium payment plan
The flexibility of the premium payment plan is a major factor that also affects demand for
insurance. This agrees with Leftley (2002) assessment that an existing insurance product fail not
because the terms and pricing were unacceptable, but because the premium had to be paid in
advance. The up-front payment requirements were not in line with the potential policyholders’
cash flow. 67% of the respondents said that they offer monthly premium payment plans, 33%
offered termly premium plan. However they were no respondents that offered quarterly and annual
premium payment plans. The researcher’s findings are presented in figure 4.10 below:
Figure 4.10: Premium payment plans
$1-10, 67%
$11-$15, 0%
Above $15, 33%
0%
10%
20%
30%
40%
50%
60%
70%
premiums
Monthly
67%
Quarterly
0%
Termly
33%
Annually
0%
PAYMENT PLANS

44
4.2.6 Challenges faced by insurers in providing microinsurance
The insurers highlighted some of the challenges they face in providing microinsurance. The
challenges are discussed below:
a) Moral Hazard
According to Radermacher et al (2006) moral hazard occurs when people with insurance use more
services then they would if they did not have coverage only because they know that they are
protected. Most insured confuse insurance with savings. If at the expiration of their policy don’t
receive a pay-out, most resort to fraud. In the case of farmers, they deliberately destroy their crops.
b) Marketing
A major issue for potential customers in buying insurance is having a level of trust with the
company selling the required products and services. Microinsurance is a new concept that requires
a lot of marketing to be profitable in the long run. With the liquidity crisis in Zimbabwe, this is
proving to be impossible to achieve.
c) Failure to remit premiums by insured
The other major challenge being faced by insurers is the failure by the insured to pay premiums
timeously.
4.3.7 Is the current regulatory environment conducive?
The question was included to assess the conduciveness of the current regulatory environment on
microinsurance. Surprisingly 62% of the respondents said that the current regulatory environment
is conducive for microinsurance. However 38% of the respondents said that the environment was
not conducive for microinsurance. The results are presented in figure 4.11 below:

45
Figure 4.11: Conduciveness of the regulatory environment
4.3.8 Other players that may be instrumental in the development of microinsurance.
The question was included to determine other players that may be instrumental in the development
of microinsurance. 75% of the respondents identified banks and NGOs as instrumental partners,
20% identified the Government as instrumental and 5% identified other players. The results are
presented in figure 4.12 below:
Figure 4.12: Other instrumental players
4.4 Summary
62%
38%
Yes
No
75%
20%
5%
0% 10% 20% 30% 40% 50% 60% 70% 80%
BANKS AND NGOS
GOVERNMENT
OTHERS

46
The chapter outlined the findings from the primary research conducted by the researcher. Tables,
bar graphs and pie charts were used to present the findings in a coherent and easy to understand
manner. Qualitative analysis was used to analyse qualitative data especially where views and
opinions were the subject matter. The next chapter is the final one and it is the summary of findings
and is where conclusions and recommendations are outlined.

47
Chapter 5
Conclusions and Recommendations
‘Things never turn out so well or as badly as they ought to by strict logic.’ –
Ince
5.0 Introduction
This chapter presents conclusions made from the findings. The researcher managed to get a number
of findings from which conclusions and recommendations to short term insurer were made.
5.1 Summary of Findings
The following findings can be concluded from the study:
a) Microinsurance
The research showed that they are microinsurance products currently being offered in the
Zimbabwean market.
b) Demand for microinsurance
The study also revealed that there is demand for microinsurance among the rural poor in
Zimbabwe.
c) Regulation
The study revealed that the Insurance Act Chapter 24:07 does not address issues to do with
microinsurance. The Act is silent on microinsurance. It is not adequate to address the regulation
of microinsurance. This situation results in insurance companies doing whatever they want, for
instance, they can formulate any product under the guise of microinsurance and push inappropriate
products on the market hence exploiting the insured.
d) Willingness to pay premiums by farm produce
The research also revealed that the rural poor are willing to pay their premium with their farm
produce, for instance cattle and grain.
e) Awareness of microinsurance
The research showed that most of rural poor (78%) are not familiar with the concept of insurance.

48
f) Other challenges
The study revealed that insurers offering microinsurance products are facing the risk of moral
hazard, fraud and marketing. On moral hazard and fraud, most of the perpetrators are tobacco
farmer who file in fraudulent claims. Insurers are also finding it hard to market their products
because of the cost involved in marketing in remote areas.
g) Claim turnaround
The research revealed that the rural poor prefer their claims to be settled within the first week after
submitting their claims.
h) Other instrumental players
The research also revealed that there is a need for insurers to partner other plays to increase the
efficiency of microinsurance products.
5.2 Recommendations
From the findings, the following recommendations can be made:
a) Product Design
The insurer should focus more on coming up with innovative new microinsurance products to
complement the existing products. This point is amplified by Churchill (2006) stating that,
designing microinsurance policies requires intensive work and is not simply a question of reducing
the price of existing insurance policies.
b) Tapping into the rural poor market
From the findings, there is a huge demand for microinsurance from the rural poor. The insurers
should consider tapping into this market.
c) Regulatory challenges
The research also exposed the inadequacy of the current Insurance Act Chapter 24:07. The
regulator has to include microinsurance issues in the current Act. There is also a need to formulate
a whole new regulatory framework for microinsurance.
d) Flexible premiums
Insurance companies should also consider accepting premiums in the form of grain or cattle. This
premium payment method would require insurance companies to set up collection points for the

49
produce in the rural areas. The insurer would then have to sell the farm produce to get the premiums
in monetary value.
e) Creating awareness of microinsurance
Insurers need to promote microinsurance to the rural poor hence increase awareness. Insurers
might need to the rural poor hence increase awareness. Insurer might need to demonstrate the
relevancy of microinsurance to the rural poor. Awareness can be increase through partnering will
a reputable organisation amongst the rural poor, for instance NGOs hence increasing trust and
product adoption.
f) Moral Hazard and Fraud
The insurer might need to employ forensic investigation on the claims handed in. in the event that
a claim has to be rejected, insurer has to reject in a well-managed manner. This is also suggested
by Allianz AG et al (2006) that the reasons for rejecting a claim should be made clear to all the
villagers.
g) Claim turnaround period
Claims are the product of insurance. Insurer should be able to pay the insured’s claim in a short
time given that rural poor need relief immediately.
5.3 Conclusion
Although the low-income groups often have informal means of managing their risks, informal
coping mechanisms generally provide insufficient protection. Many risk management strategies
result in low returns for the household and fail to sustain continued stresses on the income of the
household as is often the case with low income households. Before a household recovers from one
crisis another strikes.
The researcher can safely conclude that there is a general demand for microinsurance products in
rural communities. What is lacking is willingness and innovativeness to cover the risks of the poor
households. The current products are not fully addressing all the risks faced by the rural poor. This
is attributed mainly to lack of understanding and appreciation of insurance products by the rural
poor and a regulatory framework that does not directly encourage development of products for the
rural poor.

50
If these issues are addressed then microinsurance can be integrated to manage risks for the rural
poor and provide a huge market for insurers. It is feasible to introduce microinsurance in
Zimbabwe.
5.4 Areas for further research
The research on feasibility of introducing microinsurance in Zimbabwe in long term business.
Further research can also be carried out on the factors that affect demand for microinsurance
among the rural poor.
5.5 Summary
This chapter presented the findings obtained from the research and also gives recommendations
which if adopted by short term insurer can help them grow their portfolios and profitability.

51
References
AG, A. GTZ & Partnership, U. P. P., (2006) Microinsurance: Demand and Market Prospects-
India.
Babbie, E. (1990) Survey Research Methods. 2nd ed. Belmont CA: Wandsworth.
Bryman, S. & Bell, E. (2003) Business Research Methods. New York: Oxford University Press.
Burns, N. & Grove, E. (2003) Understanding Nursing Research. 3rd ed. Philadelphia: PA: W.B.
Saunders.
Burns, R. B. (2000) Introduction to Research Methods. 5th ed. London: Sage Publications.
Chamberlain, D. et al. (2013) Regulation for inclusive insurance markets in SADC: Review of
Regulation, Cape Town: FINMARK Trust.
Churchill, C. (2006) What is Insurance for the poor? In: C. Churchill, ed. Protecting the poor: A
Microinsurance Compendium. Geneva: International Labour Organisation.
Cohen, M. & Sebstad, J. (2006) The Demand for Microinsurance. In: C. Churchill, ed. Protecting
the Poor: A Microinsurance Compendium. Geneva: International Labour Organisation.
Creswell, M. J. (2003) Research, Design, Qualitative, Quantitativeand Mixed Methods. Thousand
Oaks, CA: Sage Publications.
Ganguly, S. (2000) Insurance Management. 1st ed. New Delhi: New Age International Publishers.
Haralambos, M. & Holborn, M. (1990) Sociology: Themes & Perspectives. London: Collins
Educational.
Ingram, M. & McCord, M. J. (2011) Defining "Microinsurance": Thoughts for a journey towards
a common understanding. Microinsurance Centre.
Insight, L. 3. R. (2009) Insurance in Developing Countries: Exploring Opportunities in
Microinsurance. London, Lloyds.

52
Jacquier, C. Ramm, G. Marcadent, P. & Schmitt-Diabate, V. (2006) The social protection
perspective on microinsurance. In: C. Churchill, ed. Protecting the poor: A Microinsurance
Compendium. Geneva: International labour Organisation.
Maleika, M. & Kuriakose, A. (2008) Social Funds Innovations Notes. Microinsurance: Extending
Pro-poor Risk Management Through The Social Fund Platform. The World Bank.
Matul, M. (2006) Market for microinsurance in Ukraine: Low-income households needs and
market development projections. Warsaw: Microfinance Centre.
McCord, J. & Osinde, S. (2003) Reducing Vulnerability: The Supply of Health Microinsurance in
East Africa, MicroSave.
McCord, M. J. (2012) Product development for microfinance providers. s.l. International Fund for
Agricultural Development.
Milne, J., n.d. Questionnaires: Advantages and Disadvantages. [Online]
Available at: http://www.icbi.hw.ac.uk/ltdi/cookbook/info-questionnaires
[Accessed 01 04 2014].
Polit, D. F., Beck, C. T. & Hungler, B. (2001) Essentials of Nursing Research: Methods, Appraisal
and Utilisation. Philadelphia: Lippincott.
Radermacher, R., Dror, I. & Noble, G. (2006) Challenges and strategies to extend health insurance
to the poor. In: C. Churchill, ed. Protecting the poor: A Microinsurance Compendium. Geneva:
International Labour Organisation.
Saunders, M., Lewis, P. & Thornhill, A. (2007) Research Methods for Business Students. 4th ed.
London: Prentice Hall.
Sebstad, I., Cohen, M. & McGuiness, E. (2006) Guidelines for market research on the demand for
microinsurance, USAID.
Supervisors, I. A. o. I. & Microinsurance, C. W. G. o. (2007) Issues in regulation and supervision
of microinsurance, Basel: International Association of Insurance Supervisors.

53
Thornburn, C. n.d. The World Bank. [Online]
Available at: http://www.actuaries.org/MICROINSURANCE/Tallinn/Thornburn-AM.pdf
[Accessed 15 03 2014].
Trochim, W. M. (2006) Qualitative Measures: Research Measures Knowledge Base.
Trust, P. R. F. (2011) Urban Poverty in Zimbabwe: The Case of Mutare, Harare.
Wiedmaier-Pfister, M. (2004) Regulation and Supervision of Microinsurance. Eschborn: GTZ.
Yount, P. (2006) Population and Sampling.
ZimStat, (2012) Provincial Report: Matabeleland South, Harare: Zimbabwe National Statistics
Agency.
http://www.microinsurancefacility.org [Accessed 05 04 2014].
http://www.microinsurancefacility.org/about/what-is-microinsurance [Accessed 22 03 2014]
http://www.microinsurance Network-Microinsurance-A-Brief-History.htm [Accessed 06 04 2014
http://www.cnr.uidaho.ed/css 506_Notes/Sampling%20techniques.doc [Accessed 26 03 2013]
http://www.secondary-dat.com.htm [Accessed 02 04 2013]
www.answer.com/topic/data-analyses [Accessed 02 04 2014]
Newspapers
The Herald of 17 February 2014
The Zimbabwean of 20 April 2013

Rake iroro

Recommended

Recommended

More Related Content

Similar to Rake iroro

Similar to Rake iroro (20)

Rake iroro