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ASSESSING THE WILLINGNESS TO PAY FOR MICRO CYBER-RISK INSURANCE AMONG BRANCHLESS BANKING AGENTS IN URBAN SLUMS.

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Název: ASSESSING THE WILLINGNESS TO PAY FOR MICRO CYBER-RISK INSURANCE AMONG BRANCHLESS BANKING AGENTS IN URBAN SLUMS.
Autoři: Osifodunrin, Edward A.1 edward_ao@phd.iseg.ulisboa.pt, Dias Lopes, José1 osifodunrin@yahoo.com
Zdroj: Journal of Developing Areas. Fall2025, Vol. 59 Issue 4, p97-120. 24p.
Témata: STATISTICAL significance, CONSCIOUSNESS raising, RISK perception, DIGITAL technology, LOGISTIC regression analysis
Geografický termín: NIGERIA
Abstrakt: Branchless banking services play an important role in bringing critical micro-financial access to underserved or deprived individuals in developing countries. Local agents or retail e-payment agents (REAs) who use point-of-sale (POS) or other digital devices to provide such services face multiple risks, including POS-related cyber risks (PRCRs). This study adopted POS-related micro cyber risk insurance (PRMCRI) as an innovative and effective mechanism for managing PRCRs among REAs serving slums in Lagos, Nigeria. Five factors hypothesized to influence agents' willingness to pay (WTP) for PRMCRI were investigated using a contingent valuation survey and logistic regression analysis. To enhance the validity and reliability of the survey data, REAs were required to present read-only, computer-generated transaction reports printed from the servers of their affiliated payment service providers, traditional banks, or neobanks. These records served as corroborative evidence of operational realities. Additionally, qualitative, scenario-based illustrations and explanatory remarks were elicited systematically from the REAs to provide contextual depth and support the quantitative findings. We find a statistically significant relationship between earnings from REA operations and WTP for PRMCRI, but contrary to prior evidence, PRCR-aversion showed no such effect. The ex-ante PRCR perceptions of REAs emerged as the most statistically significant among factors investigated, while ex-post perceptions were non-significant. Among sociodemographic variables, only marital status significantly influenced WTP for PRMCRI. As REAs actively co-designed PRMCRI with local micro-insurers, this collaborative effort not only significantly influenced their WTP for the product but also may enhance its eventual success. Our results (re)sensitize stakeholders to note possible factors capable of driving demand for a unique, innovative, and co-designed microinsurance product. Policymakers and regulators are encouraged to support regulatory sandboxes and inclusive insurance frameworks that allow for initiating, co-designing, testing, cogoverning, and scaling such microinsurance solutions. Interventions that enhance risk awareness, literacy, and mitigation, especially around cyber threats in micro-financial ecosystems, could further stimulate demand and uptake. The study also stresses that cyber risks are likely to escalate as digital micro-financial services expand in the post-COVID era across developing countries, making PRMCRI and similar co-designed products critical for protecting subscribers' welfare. [ABSTRACT FROM AUTHOR]
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Databáze: Business Source Index
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Abstrakt:Branchless banking services play an important role in bringing critical micro-financial access to underserved or deprived individuals in developing countries. Local agents or retail e-payment agents (REAs) who use point-of-sale (POS) or other digital devices to provide such services face multiple risks, including POS-related cyber risks (PRCRs). This study adopted POS-related micro cyber risk insurance (PRMCRI) as an innovative and effective mechanism for managing PRCRs among REAs serving slums in Lagos, Nigeria. Five factors hypothesized to influence agents' willingness to pay (WTP) for PRMCRI were investigated using a contingent valuation survey and logistic regression analysis. To enhance the validity and reliability of the survey data, REAs were required to present read-only, computer-generated transaction reports printed from the servers of their affiliated payment service providers, traditional banks, or neobanks. These records served as corroborative evidence of operational realities. Additionally, qualitative, scenario-based illustrations and explanatory remarks were elicited systematically from the REAs to provide contextual depth and support the quantitative findings. We find a statistically significant relationship between earnings from REA operations and WTP for PRMCRI, but contrary to prior evidence, PRCR-aversion showed no such effect. The ex-ante PRCR perceptions of REAs emerged as the most statistically significant among factors investigated, while ex-post perceptions were non-significant. Among sociodemographic variables, only marital status significantly influenced WTP for PRMCRI. As REAs actively co-designed PRMCRI with local micro-insurers, this collaborative effort not only significantly influenced their WTP for the product but also may enhance its eventual success. Our results (re)sensitize stakeholders to note possible factors capable of driving demand for a unique, innovative, and co-designed microinsurance product. Policymakers and regulators are encouraged to support regulatory sandboxes and inclusive insurance frameworks that allow for initiating, co-designing, testing, cogoverning, and scaling such microinsurance solutions. Interventions that enhance risk awareness, literacy, and mitigation, especially around cyber threats in micro-financial ecosystems, could further stimulate demand and uptake. The study also stresses that cyber risks are likely to escalate as digital micro-financial services expand in the post-COVID era across developing countries, making PRMCRI and similar co-designed products critical for protecting subscribers' welfare. [ABSTRACT FROM AUTHOR]
ISSN:0022037X
DOI:10.1353/jda.2025.a970234