Client-value of microinsurance products: Evidence from the Mutual Assistance Fund in Vietnam
This paper investigates the preferences of clients and determinants of demand for microinsurance products with the case study of the Mutual Assistance Fund (MAF), the pioneer microinsurance provider in Vietnam. The results reveal that the current premium offered by MAF seems too low and that it has no significant effect on the preferences of clients over product attributes. It is also found that clients are willing to pay higher premiums in order to receive a higher level of benefit. In addition, the main factors that are significantly affecting product preferences are previous experience with insurance, mathematical ability and attitude towards risk.