The Demand for Disaster Microinsurance for Small Businesses in Urban Slums: The Results of Surveys in Three Indian Cities

This study investigates the concerns noted above and looks at the potential for microinsurance in poor urban areas. In each surveyed region, we gauged knowledge of microinsurance and small business owners’ desire for programs. This initial study report contextualizes those findings and assesses the potential success of microinsurance programs. Methodology The study was conducted in partnership between the All India Disaster Mitigation Institute (AIDMI), an NGO based in Gujarat, India and Stanford University in California, USA supported by the Humanitarian Innovation Fund. The study sites include urban slums in three disaster-prone cities of India: Puri in Odisha, Guwahati in Assam and Cuddalore in Tamil Nadu. The demand survey instrument was designed collaboratively between the two organizations with feedback from local community-based organizations (CBOs) in the study cities. After teams at AIDMI and Stanford had finalized the survey template, it was sent to CBO staff in the field. To understand the effects of recent disasters on small business owners, local teams surveyed 1622 people in Guwahati, 1551 people in Puri, and 1746 people in Cuddalore from urban slum communities served by a local CBO in each region. These three pilot sites were selected because they met two important criteria: each lies in a high-risk zone for cyclones or flooding, and each had a community-based organization with the capacity and motivation to participate in this program. Purposive sampling ...
Source: PLOS Currents Disasters - Category: Global & Universal Authors: Source Type: research