asigurri

Asigurri is a term used in sociological and development literature to describe a family of informal, community-based risk-sharing arrangements. The word is sometimes traced to the Romanian concept of asigurări (insurance), with asigurri used to denote a plural or plural-like collection of practices.

Definition and scope: Asigurri refer to voluntary pools of resources created by members to cover specified risks—such as illness, funerals, property loss, or crop damage—without formal insurance contracts. Participation is voluntary; contributions are typically regular and modest, and distributions are made in the form of reimbursements or assistance when a member incurs eligible expenses. Decision-making is usually communal, with rotating committees or councils responsible for collecting funds, approving claims, and maintaining records.

Structure: The schemes rely on social ties and trust; record-keeping may include ledgers and receipts; rules specify eligibility, waiting periods, and coverage limits; linkages to microfinance groups or savings circles are common, increasing financial literacy and collective bargaining power.

History and distribution: The concept emerged in the early 21st century in rural and peri-urban contexts of Eastern Europe and Central Asia, where gaps in formal social protection coincided with strong communal networks. It is most often described in qualitative fieldwork and small-scale case studies rather than large-scale surveys.

Reception and critique: Proponents note low cost, accessibility, and social cohesion; critics point to limited risk pooling, potential inequities, governance challenges, and regulatory ambiguity. They argue that asigurri are best viewed as supplementary to formal insurance and state safety nets rather than replacements.

Relation to policy and practice: In development programs, asigurri schemes are sometimes supported as pathways to financial inclusion or as stepping-stones to formal microinsurance. Digital platforms and mobile money have begun to facilitate contributions and claims in some areas.