A chat about insurance: Experimental results from rural Bangladesh
Farmers throughout the developing world face multiple sources of uninsured risk to agricultural production and household assets. In this paper, we present results from an experimental demand‐elicitation exercise in rural Bangladesh to shed light on smallholder farmers' interest in formal insurance p...
| Autores principales: | , , , , |
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| Formato: | Journal Article |
| Lenguaje: | Inglés |
| Publicado: |
Wiley
2015
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/150867 |
| _version_ | 1855537240200970240 |
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| author | Clarke, Daniel J. de Nicola, Francesca Hill, Ruth Vargas Kumar, Neha Mehta, Parendi |
| author_browse | Clarke, Daniel J. Hill, Ruth Vargas Kumar, Neha Mehta, Parendi de Nicola, Francesca |
| author_facet | Clarke, Daniel J. de Nicola, Francesca Hill, Ruth Vargas Kumar, Neha Mehta, Parendi |
| author_sort | Clarke, Daniel J. |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Farmers throughout the developing world face multiple sources of uninsured risk to agricultural production and household assets. In this paper, we present results from an experimental demand‐elicitation exercise in rural Bangladesh to shed light on smallholder farmers' interest in formal insurance products. We propose a suite of insurance and savings products, and we randomly vary the price of one insurance option (area‐yield insurance) and the presence of one of the savings options (group savings). Consistent with economic theory, farmers buy more of the insurance products that cover the risks they primarily face. However, because farmers are subject to a variety of risks, they do not focus on only one type of insurance; instead, they evenly split their endowment between life and disability insurance and agricultural insurance. Demand for area‐yield insurance falls with price; we also observe important cross‐price elasticities with other insurance products. The presence of group savings does not alter demand for insurance, though group savings is found to be a particularly popular risk management tool, especially when decisions are made in groups. |
| format | Journal Article |
| id | CGSpace150867 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2015 |
| publishDateRange | 2015 |
| publishDateSort | 2015 |
| publisher | Wiley |
| publisherStr | Wiley |
| record_format | dspace |
| spelling | CGSpace1508672024-10-25T08:04:39Z A chat about insurance: Experimental results from rural Bangladesh Clarke, Daniel J. de Nicola, Francesca Hill, Ruth Vargas Kumar, Neha Mehta, Parendi insurance risk savings rural areas Farmers throughout the developing world face multiple sources of uninsured risk to agricultural production and household assets. In this paper, we present results from an experimental demand‐elicitation exercise in rural Bangladesh to shed light on smallholder farmers' interest in formal insurance products. We propose a suite of insurance and savings products, and we randomly vary the price of one insurance option (area‐yield insurance) and the presence of one of the savings options (group savings). Consistent with economic theory, farmers buy more of the insurance products that cover the risks they primarily face. However, because farmers are subject to a variety of risks, they do not focus on only one type of insurance; instead, they evenly split their endowment between life and disability insurance and agricultural insurance. Demand for area‐yield insurance falls with price; we also observe important cross‐price elasticities with other insurance products. The presence of group savings does not alter demand for insurance, though group savings is found to be a particularly popular risk management tool, especially when decisions are made in groups. 2015-01-01 2024-08-01T02:54:05Z 2024-08-01T02:54:05Z Journal Article https://hdl.handle.net/10568/150867 en Limited Access Wiley Clarke, Daniel; de Nicola, Francesca; Hill, Ruth Vargas; Kumar, Neha; and Mehta, Parendi. 2015. A chat about insurance: Experimental results from rural Bangladesh. Applied Economic Perspectives and Policy. 37(3): 477-501. https://doi.org/10.1093/aepp/ppu041 |
| spellingShingle | insurance risk savings rural areas Clarke, Daniel J. de Nicola, Francesca Hill, Ruth Vargas Kumar, Neha Mehta, Parendi A chat about insurance: Experimental results from rural Bangladesh |
| title | A chat about insurance: Experimental results from rural Bangladesh |
| title_full | A chat about insurance: Experimental results from rural Bangladesh |
| title_fullStr | A chat about insurance: Experimental results from rural Bangladesh |
| title_full_unstemmed | A chat about insurance: Experimental results from rural Bangladesh |
| title_short | A chat about insurance: Experimental results from rural Bangladesh |
| title_sort | chat about insurance experimental results from rural bangladesh |
| topic | insurance risk savings rural areas |
| url | https://hdl.handle.net/10568/150867 |
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