Market Research Methodology The main goal of the research is to explore low-income households’ needs for microinsurance as well as oppor tuni ties and chall enges to micr oinsur ance provi sion in order to proj ect micr oinsur ance marke t development. Microinsurance is a market-based mechanism to reduce vulnerability of low-income households. Needs for microinsurance are analyzed from a development perspective - an add value of microinsurance in building economic security for low-income households. Whereas, analysis of opportunities and challenges provides insights into business potential of microinsurance. The main areas investigated in the research are the following: • Wha t are the mos t imp ortant risks for low-i ncome households in ter ms of their fi nancial pressure? • Wh at ar e th e bi ggest gaps in risk -management strate gi es that can be re pl aced by microinsurance? • How can curr ent insurance knowled ge, usage and atti tude towards it influence launchi ng new microinsurance products? • What is willingness to pay for microinsurance? Qualitative and quantitative research techniques are combined to respond to research objectives. Qualitative research consists of focus groups (FGs) composed of 6-7 participants. FGs were driven by participatory rapid appraisal tools and discussion guides. Research was conducted in the capital Baku, in several regions of the country, in urban and rural areas to control for important cultural differences. FGD participants are selected from low-income households. For the quantitative study a survey on representative sample of 1,000 households’ heads iss carried out using face-to-face method. The sample is stratified by the regions where interviews are proportionally distributed according to the size of settlement. Settlements are randomly selected from every group ofsettlements. Random route sampling technique iss used. Access frontier methodology developed by David Porteous is an underpinning conceptual framework for the study. The total market is divided in four segments: Main market segments Description of the segment How defined in the study Within access frontiernowThe maximum percentage of households who can access the suggested microinsurance product concepts on current terms and conditions. Those who are willing to buy suggested microinsurance products. Within access frontier in the future A group of households who are likely to access the suggested microinsurance product concepts if terms and conditions are more adapted to them. In the case ofThe rest of the market.
