This study from Ghana found that index insurance lowers overall demand for agricultural loans while farmers appear to prefer micro-level insurance over meso‐level insurance. The study also shows that farmers are willing to pay to avoid basis risk.
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 article investigates the impact of insurance backed contingent credit on demand for credit and investment decisions using a framed field experiment conducted in rural Tanzania.
This study tests whether a new financial product that offers guaranteed credit access after a shock allows households to insure themselves against risk with a large-scale RCT involving 300,000 subjects in Bangladesh with one of the country’s largest microcredit institutions.
