Threats, responses, and insurance innovations: evidence from micro-insurance of African SMEs using the protection motivation theory

Key Points

• The study investigates how African SMEs perceive threats and respond through micro-insurance innovations, utilizing protection motivation theory.
• Analyzed data from African SMEs regarding their insurance needs and threat perceptions.
• Examined the effectiveness of various micro-insurance products in addressing these needs.
• Utilized protection motivation theory to interpret responses to identified threats.
• Identified key threats faced by African SMEs, including economic instability and health risks.
• Demonstrated that SMEs with micro-insurance are more resilient to identified threats, with a significant increase in sustainability metrics.
• Innovation in insurance products led to improved uptake among SMEs, suggesting a strong market demand.