‘rule of experts’ in making a dynamic micro-insurance industry in India

India is reported to have the most dynamic micro-insurance market in the world and the largest weather-index insurance market among developing countries. This is interesting because, paradoxically, reports readily suggest that the primary hindrance for the industry is the widespread lack of effectiv...

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Bibliographic Details
Published in:The Journal of peasant studies 2013-09, Vol.40 (5), p.845-865
Main Author: Da Costa, Dia
Format: Article
Language:English
Subjects:
Climate
construction industry
Cooperation
crop and weather insurance
Culture
Decision-making
Decolonization
Developing Countries
Entrepreneurship
Experts
India
Industry
Insurance
insurance literacy
Investment
Investments
Knowledge
Low income groups
Markets
micro-insurance
Microfinance
Pedagogy
Policy making
Political Economy
politics
Prices
professionals
Profit Motive
Profits
Reform
Regulation
Risk
Risk aversion
Supply & demand
Values
world markets
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Summary:India is reported to have the most dynamic micro-insurance market in the world and the largest weather-index insurance market among developing countries. This is interesting because, paradoxically, reports readily suggest that the primary hindrance for the industry is the widespread lack of effective demand for insurance. This paper seeks to identify, understand and problematize the paradox of resolutely promoting micro-insurance and its apparent rapid growth despite a manifest absence of demand for insurance. Neo-classical theories about risk-averse behaviour do not explain the current lack of appeal of insurance among the poor. Rather, I draw on a postcolonial political economy framework to argue that expert investment in getting prices and culture right while safeguarding micro-insurance supply currently explains the celebrated dynamism of Indian micro-insurance. I argue that promoting comprehensive institutional reform for an ideal investment and entrepreneurial climate involves securing mutually beneficial linkages, collaborations and knowledge within a broad assemblage of profit motives, insurance expertise, policy-makers and professionals. Insurance experts rule by promoting the micro-insurance sector while simultaneously investing in and gaining from discursive, material and pedagogical construction of this industry. Future research should address whether such processes and products are effective in managing financial risks of the poor.
ISSN:1743-9361
0306-6150
1743-9361
DOI:10.1080/03066150.2013.857659