Index-based agricultural insurance has offered the promise of overcoming the hurdles of traditional indemnity-based insurance for economic development. This paper describes how existing constraints on take-up can partially be overcome using revised contract designs, advanced technology for better measurement, improved marketing and better policy.
In this study, AMA Innovation Lab researchers play a series of incentivized laboratory games with risk-exposed cooperative-based coﬀee farmers in Guatemala to understand the demand for index-based rainfall insurance.
This paper addresses the reasons for this current discrepancy between promise and reality. We conclude on perspectives for improvements in product design, complementary interventions to boost uptake, and strategies for sustainable scaling up of uptake.