Exposing informal enterprises to retail digital financial services (DFS), particularly digitized microinsurance, could achieve three main policy goals: improving job security for the agents, increasing insurance coverage among the populace, and expanding DFS in the informal sector. DFS is known to enhance enterprises’ overall efficiency and competitiveness in the world of business. However, digitized services are limited among informal sector players in low-income countries, despite the growth of ICT and the penetration of mobile technology. In the area of insurance particularly, about 70 percent of Ghanaians are deemed to have no insurance coverage for their lives and/or properties. This proportion of the population lacks proper knowledge of insurance and is often discouraged by the cumbersome procedures of securing insurance cover and following up on claims. Digitized microinsurance potentially is a vehicle that could overcome the knowledge gap and provide end-to-end support to future insurers regarding insuring with ease as well as having stress-free benefits claims processes. Studies have shown that by leveraging mobile technologies, the supply of digitised microinsurance could promote the effective accessibility of microinsurance, providing opportunities to reach low-income households in remote places and contribute to increasing insurance coverage in Ghana. Hence, this study proposes a novel approach to understanding the gaps in literature, to contribute to policy strengthening through an integrative DFS ‘retailership’ scheme in microinsurance supply based on digitized systems among informal entrepreneurs in Ghana. The study will collect original baseline data on informal businesses that will be the primary participants of the study, carry out a location-based randomized control trial (RCT) experiment based on the digitized microinsurance intervention using the primary respondents, with the end-line follow-up survey helping with the assessment of the impacts of the digitized microinsurance supply and utilization on business growth and sustainability in Ghana.
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Institution