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.
To cope with shocks, poor households with inadequate access to ﬁnancial markets can sell assets to smooth consumption and ,or reduce consumption to protect assets. Utilizing data from an RCT in Kenya, this paper estimates that on average an innovative microinsurance scheme reduces both forms of costly coping.
Social protection programs are designed to help vulnerable populations—including pastoralists—maintain a basic level of wellbeing, manage risk, and cope with negative shocks. The research team uses evidence-based to understand the poverty dynamics in the pastoralist-based economy of northern Kenya’s arid and semi arid lands as a case study to discuss and compare the observed impacts of two different social protection schemes on heterogeneous pastoralist households.
The research team describes the methodology used to design the contract and its underlying index of predicted area-average livestock mortality in Index-based Livestock Insurance. The Principal Investigator describes the contract pricing and the risk exposures of the underwriter to establish IBLI’s reinsurability on international markets.
This presentation took place at the Feed the Future Innovation Labs for Collaborative Research Regional Partners Meeting in Accra, Ghana on July 8-9, 2013 describing innovative projects addressing the three primary socioeconomic constraints.