The gains from insurance arise from the transfer of income across states. This paper shows that the transfer of gains from insurance across time can help explain low insurance demand, especially among the poor, with results from a randomized control trial on a crop insurance product in Kenya which removes it.
This study used longitudinal household data to determine which factors affected demand for index based livestock insurance (IBLI). While both price and the non-price factors studied previously are indeed important, the findings indicate that basis risk and spatiotemporal adverse selection also play a major role in determining demand for IBLI.
This study uses economic approaches and the case of the index based livestock insurance (IBLI) product in Kenya to compare the quality of insurance products developed from a variety of satellite -based indices, all of which have either been proposed or are/have been used by insurance or insurance-like products in the region.