Presentation: Basis Risk and Demand for Index-based Livestock Insurance: Evidence from Northern Kenya

Pilot index insurance projects have experienced extremely low uptake (often less than 5%) and low levels of demand among those that purchase. Some potential factors for low demand can be due to pricing, basis risk, and non-price factors (i.e. understanding of the product, trust, informal insurance). In the IBLI Marsabit case, there is a unique position observing household level losses and design error in a product specifically designed to minimize basis risk.

This presentation is based on AMA Innovation Lab projects for the 2013 BASIS/I4 Technical Committee Meeting. This meeting gathered researchers affiliated with the Index Insurance Innovation Initiative (I4) at UC Davis.

This presentation took place in University of California Davis, United States.