Exploring The Potential Of Microinsurance For Challenging The Vulnerabilities In Poverty Sector Of Yemen (An Empirical Study From Demand Side Perspectives)

  • Ali Saleh Alshebami et al.


The intention to mitigate the poverty level and to create new job opportunities for the excluded poor
individuals rely largely on the usage of key means necessary for uplifting them form their catastrophic
current situations in which they live. Hence, such an objective may be achieved if poor people are
supported with an integrated package containing a set of numerous pro-micro-financial products and
services essential for establishing their activities, covering the potential risks, saving for the future, and
building the necessary skills and capabilities. Therefore and due to this importance, it was essential to
investigate the opinions of microfinance borrowers onthe values of microinsurance among borrowers in
Yemen and whether they see it as a potential product or not in addition to checking their level of
awareness aboutit, its significance from their point of view and their future orientation toward it. The
study targeted a sample of 201 borrowers from The National Microfinance Foundation (NMF) as it is
believed to be the most active one these days in the microfinance market ofYemen. The findings revealeda
high acceptance from the respondents on the values of microinsurance, its benefits,and the intention of
the respondents to apply for microinsurance products and services in the future ifthey areaffordableand
have a suitable microinsurance premium.The findings further confirmed that the selected sample of the
study almost has a very low awareness about microinsurance and its products and services in Yemen
indicating the urgent need to put more effort into spreading the awareness on microinsuranceculture
among people as this shall lead to more demand for microfinance projects. Finally,the study strongly
recommends the immediate start of providing the required infrastructures (legal, physical) for the
introduction of microinsurance in Yemen. This is, of course, should go hand by hand along with a huge
micro insurance campaign tospread the awareness about microinsurance and its benefits among the