The insurance function of migrants' monetary transfers back home: A case study of South Africa

Most developing and newly industrialised countries have no comprehensive social-insurance system. For the majority of the population, private insurance is inaccessible of too expensive. All people, however, are exposed to risks and poor people even more so. Since it is difficult for people with small and often irregular incomes to cover major costs, they cope with the risks with different precautionary and financial-management mechanisms. This study examines whether the monetary transfers back home of migrants are a replacement for insurance or whether they lead people to buy insurance.