"Evidence from developing countries demonstrates high demand for micro insurance and an explicit willingness to pay!
Contrary to general expectations, micro insurance delivery did not achieve substantial scale as compared to the worldwide micro finance movement. One strong argument to corroborate this is the need for exporting 'local risk' to highly capitalized external 'Risk Carriers'. The ability to these risk carriers to operate across mass markets in developing countries is restricted by the lack of reliable data and absence of alternate means for risk assessment. While community based model have been successful in responding to needs to the community, they rarely achieve scale and are often critiqued to have exposure to systemic risks."