LIVING STANDARDS AND MICROINSURANCE

Karadjova, Vera and Dicevska, Snezana LIVING STANDARDS AND MICROINSURANCE. FINANCE AND INSURANCE SECTOR INDUSTRY. ISSN 978-1-9993029-1-7

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Abstract

Risks of a different kind are an objective category, and the occurrence of some of them shows zero correlation with regard to the level of economic development and the level of living standards. This makes it difficult to manage them, with particular emphasis on economically less developed, developing countries and poorer population structures. The demand for insurance as a basic strategy for risk management is mainly determined by the level of living standard and the possibility of purchasing insurance services by socially vulnerable categories of the population. Such a correlation, in turn, leads to that situation, that uninsured risks, regardless of the type of risk in question, especially badly affect poorer categories of society which cannot cope with the catastrophic losses from negative shocks. This applies to all types of risks that are a threat to the population and businesses, but especially to a large number of risks that people even in modern conditions cannot resist. In this category the greatest threats are so-called catastrophic risks in which there are two main categories: (I) Climate changes; and (2) Natural disasters (earthquakes, floods, etc.). This paper elaborates mutual relations among mentioned categories, i.e. living standards and the need for developing microinsurance services, make analysis of the socially vulnerable strata of the population and the microinsurance models that could be applied in countries that have not still developed this form of insurance. Key words: living standards, vulnerable strata of the population, poverty, risks management, microinsurance

Item Type: Article
Subjects: Scientific Fields (Frascati) > Social Sciences > Economics and Business
Divisions: Faculty of Tourism and Hospitality
Depositing User: Mr Bojan Sekulovski
Date Deposited: 26 Oct 2018 13:08
Last Modified: 26 Oct 2018 13:08
URI: http://eprints.uklo.edu.mk/id/eprint/1408

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