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.
Increasing agricultural efficiency via technology adoption remains a high priority among development practitioners. One potential tool for furthering this objective is using drought index insurance to increase access to credit.
This presentation took place in University of California Davis, United States describing a three-year research project promoting smallholders to purchase index insurance contracts via coupled credit in Ghana.