DOES GOVERNMENT INTERVENTION MODERATE THE EFFECTS OF FINANCIAL LITERACY INTO BUYING MICROINSURANCE AMONG THE MARGINALIZED? A LITERATURE REVIEW

Abstract

Insurance, in general, is considered as one of the most complex products that consumers purchase in their lifetime. Because of its complexities, the insuring public particularly the target of microinsurance which by demographics are considered marginalized, needs to be educated via financial literacy programs. This study explored via literature review the moderating effects of government intervention in cascading awareness and information dissemination through financial literacy programs, the importance of microinsurance as a protective tool against man-made and natural risks. Secondarily, this paper also examined the effects of financial literacy programs in the purchase of microinsurance. It is therefore incumbent upon Governments to ensure that the marginalized, who are considered in dire need of protective mechanisms, to be able to cascade the importance of microinsurance via financial literacy programs.