Resumo:
This study examines the feasibility of life microinsurance in Brazil. Microinsurance is aimed at people with per capita income of up to two minimum wages (MW), according to the definition made by the Brazilian government’s agency for superintending private insurance (SUSEP). In accordance with Vaughan and Vaughan (2007), feasibility is assessed in terms of: the demand side (whether the premium to be paid is appropriate in terms of the consumers’ income) and the supply side (whether the product is profitable for the companies offering it). The main source of data was the Brazilian National Household Survey (PNAD) from year 2008. The target population consists of 41 million family heads. For microinsurance coverages for death and funeral expenses, monthly premiums would range from US$0.43 to US$4.95 for those with per capita income of less than 0.25 MW. For the income range between 1 and 2 MW per capita, premiums vary between US$2.89 and US$18.23. The potential yearly market is approximately US$2.2 billion, with a potential profit of approximately US$328 million. These results provide significative evidence that life microinsurance can offer protection for low income people and also can be feasible in Brazil. |
