Microinsurance decisions: Gendered evidence from rural Bangladesh

Most index-based insurance products have been developed without giving explicit attention to gender. However, there is ample of evidence that shocks affect men and women differently and that they allocate resources in different ways. In Bangladesh, it is often assumed that women are less involved in...

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Main Authors: Clarke, Daniel J., Kumar, Neha
Format: Journal Article
Language:Inglés
Published: Informa UK Limited 2016
Subjects:
Online Access:https://hdl.handle.net/10568/148018
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author Clarke, Daniel J.
Kumar, Neha
author_browse Clarke, Daniel J.
Kumar, Neha
author_facet Clarke, Daniel J.
Kumar, Neha
author_sort Clarke, Daniel J.
collection Repository of Agricultural Research Outputs (CGSpace)
description Most index-based insurance products have been developed without giving explicit attention to gender. However, there is ample of evidence that shocks affect men and women differently and that they allocate resources in different ways. In Bangladesh, it is often assumed that women are less involved in agriculture, and, therefore, agricultural insurance might not be of interest to rural women. However, this assumption has not been tested in the field. This article draws from a field research experiment to examine the gendered aspects of willingness to pay for index-based insurance in Bangladesh. Participants were presented with risky lotteries and a specific insurance contract and were asked to choose how much, if any, of the insurance they wanted to buy at a given price. The probability structure, whether the risk was catastrophic or moderate and whether there was high or low basis risk, varied within sessions. The price of the insurance varied across sessions. Each participant was also given a short questionnaire, which collected information on the demographic characteristics, risk preferences, agricultural risks, knowledge of insurance products, and asset ownership. In the study, 97 percent of the participants decided to buy agricultural insurance, with no significant differences between men and women, even though women were less involved in agricultural decision-making. We found a small decrease in take-up for the low-probability event, driven by the women in the sample. When we examined the number of units bought, we found that men were likely to buy more units than women. Total wealth, as captured by total land owned, had no effect on the units bought. However, among women, total wealth mattered and had a positive correlation. Finally, we found that women had less education and lower financial literacy than their male counterparts, and did not have the experience possessed by men to understand agricultural risks. It placed them at a disadvantage when making insurance purchase decisions.
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spelling CGSpace1480182025-02-24T06:48:52Z Microinsurance decisions: Gendered evidence from rural Bangladesh Clarke, Daniel J. Kumar, Neha insurance willingness to pay gender shock capacity development assets risk resilience women climate change Most index-based insurance products have been developed without giving explicit attention to gender. However, there is ample of evidence that shocks affect men and women differently and that they allocate resources in different ways. In Bangladesh, it is often assumed that women are less involved in agriculture, and, therefore, agricultural insurance might not be of interest to rural women. However, this assumption has not been tested in the field. This article draws from a field research experiment to examine the gendered aspects of willingness to pay for index-based insurance in Bangladesh. Participants were presented with risky lotteries and a specific insurance contract and were asked to choose how much, if any, of the insurance they wanted to buy at a given price. The probability structure, whether the risk was catastrophic or moderate and whether there was high or low basis risk, varied within sessions. The price of the insurance varied across sessions. Each participant was also given a short questionnaire, which collected information on the demographic characteristics, risk preferences, agricultural risks, knowledge of insurance products, and asset ownership. In the study, 97 percent of the participants decided to buy agricultural insurance, with no significant differences between men and women, even though women were less involved in agricultural decision-making. We found a small decrease in take-up for the low-probability event, driven by the women in the sample. When we examined the number of units bought, we found that men were likely to buy more units than women. Total wealth, as captured by total land owned, had no effect on the units bought. However, among women, total wealth mattered and had a positive correlation. Finally, we found that women had less education and lower financial literacy than their male counterparts, and did not have the experience possessed by men to understand agricultural risks. It placed them at a disadvantage when making insurance purchase decisions. 2016-12-27 2024-06-21T09:23:40Z 2024-06-21T09:23:40Z Journal Article https://hdl.handle.net/10568/148018 en https://hdl.handle.net/10568/149857 https://hdl.handle.net/10568/149858 https://hdl.handle.net/10568/151427 Open Access Informa UK Limited Clarke, Daniel J.; and Kumar, Neha. 2016. Microinsurance decisions: Gendered evidence from rural Bangladesh. Gender, Technology and Development 20(2): 218 - 241. https://doi.org/10.1177/0971852416639784
spellingShingle insurance
willingness to pay
gender
shock
capacity development
assets
risk
resilience
women
climate change
Clarke, Daniel J.
Kumar, Neha
Microinsurance decisions: Gendered evidence from rural Bangladesh
title Microinsurance decisions: Gendered evidence from rural Bangladesh
title_full Microinsurance decisions: Gendered evidence from rural Bangladesh
title_fullStr Microinsurance decisions: Gendered evidence from rural Bangladesh
title_full_unstemmed Microinsurance decisions: Gendered evidence from rural Bangladesh
title_short Microinsurance decisions: Gendered evidence from rural Bangladesh
title_sort microinsurance decisions gendered evidence from rural bangladesh
topic insurance
willingness to pay
gender
shock
capacity development
assets
risk
resilience
women
climate change
url https://hdl.handle.net/10568/148018
work_keys_str_mv AT clarkedanielj microinsurancedecisionsgenderedevidencefromruralbangladesh
AT kumarneha microinsurancedecisionsgenderedevidencefromruralbangladesh