Unpacking The Invisible Wall: A Behavioral Investigation Into Barriers To Micro-Insurance Uptake Among Low-Income Families In Wayanad, India
DOI:
https://doi.org/10.64252/qmwb7e56Keywords:
Micro-insurance, Behavioral Barriers, Financial Literacy, Trust, Risk Perception, Wayanad, Low-Income Households, Insurance UptakeAbstract
This study investigates the behavioral barriers affecting the adoption of micro-insurance products among low-income households in Wayanad, Kerala. Despite the availability of government-sponsored and privately offered micro-insurance schemes, the uptake among vulnerable populations remains dismally low. Through a mixed-methods approach combining structured surveys, behavioral games, and in-depth interviews, this research identifies psychological impediments such as risk misperception, low trust in financial institutions, temporal discounting, and financial illiteracy. The study proposes a behavioral segmentation model and suggests evidence-based interventions rooted in behavioral economics. These findings provide a foundation for designing more effective, culturally sensitive, and trust-building insurance initiatives tailored to rural Indian communities.