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Evidence Base Report: Microinsurance for Orphans and Vulnerable Children

Although governments offer a range of social protection mechanisms, many OVC households remain vulnerable due to additional social, economic and psychological factors. Furthermore, social insurance, a systematic framework that allows a group of individuals to collectively spread their risk (Pitzer 2003, 3), typically excludes low-income households employed in the informal sector―leaving them vulnerable to shocks and prone to make risk-averse decisions that lead to sub-optimal development outcomes.