Blog » Integrated Risk Management Solutions for Low-Income Rural Households
An empirical study, conducted by Dvara Research in rural India, indicates that residents are particularly concerned about health expenses, second only to worries about natural disasters. These adverse events create short-term and long-term negative consequences for low-income households. Households typically cope by reducing consumption, working more, borrowing money and liquidating assets, thereby eroding safety nets and becoming deeply vulnerable to future shocks. This underscores the necessity for an integrated risk management solution that combines credit, savings and insurance solutions to complement whatever benefits are available from government schemes.