Flexible insurance for heterogeneous farmers: Results from a small-scale pilot in Ethiopia
We analyze the effectiveness of a new approach in providing weather index-based insurance products to low-income populations. The approach is based on the concept of providing multiple weather securities that pay a fixed amount if the event written on the security (that monthly rainfall at a nearby...
| Autores principales: | , |
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
| Publicado: |
International Food Policy Research Institute
2011
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/154398 |
| _version_ | 1855536458032480256 |
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| author | Hill, Ruth Vargas Robles, Miguel |
| author_browse | Hill, Ruth Vargas Robles, Miguel |
| author_facet | Hill, Ruth Vargas Robles, Miguel |
| author_sort | Hill, Ruth Vargas |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | We analyze the effectiveness of a new approach in providing weather index-based insurance products to low-income populations. The approach is based on the concept of providing multiple weather securities that pay a fixed amount if the event written on the security (that monthly rainfall at a nearby weather station falls below a stated cutoff) comes true. A theoretical model is developed to outline the conditions in which weather securities could outperform crop-specific weather index-based insurance policies. Data collected during both an experimental game and real purchases of such insurance policies among farmers in southern Ethiopia suggest that the securities are well understood and can fit heterogeneous farmer needs. This paper documents (1) heterogeneity of rainfall risk among farmers, (2) the understanding of securities and transmission of information about weather securities among members of endogenously formed risk-sharing groups, and (3) the nature of purchasing decisions and manner in which they are made. |
| format | Artículo preliminar |
| id | CGSpace154398 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2011 |
| publishDateRange | 2011 |
| publishDateSort | 2011 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1543982025-11-06T07:18:30Z Flexible insurance for heterogeneous farmers: Results from a small-scale pilot in Ethiopia Hill, Ruth Vargas Robles, Miguel insurance We analyze the effectiveness of a new approach in providing weather index-based insurance products to low-income populations. The approach is based on the concept of providing multiple weather securities that pay a fixed amount if the event written on the security (that monthly rainfall at a nearby weather station falls below a stated cutoff) comes true. A theoretical model is developed to outline the conditions in which weather securities could outperform crop-specific weather index-based insurance policies. Data collected during both an experimental game and real purchases of such insurance policies among farmers in southern Ethiopia suggest that the securities are well understood and can fit heterogeneous farmer needs. This paper documents (1) heterogeneity of rainfall risk among farmers, (2) the understanding of securities and transmission of information about weather securities among members of endogenously formed risk-sharing groups, and (3) the nature of purchasing decisions and manner in which they are made. 2011 2024-10-01T14:01:18Z 2024-10-01T14:01:18Z Working Paper https://hdl.handle.net/10568/154398 en Open Access application/pdf International Food Policy Research Institute Hill, Ruth Vargas; Robles, Miguel. 2011. Flexible insurance for heterogeneous farmers: Results from a small-scale pilot in Ethiopia. IFPRI Discussion Paper 1092. https://hdl.handle.net/10568/154398 |
| spellingShingle | insurance Hill, Ruth Vargas Robles, Miguel Flexible insurance for heterogeneous farmers: Results from a small-scale pilot in Ethiopia |
| title | Flexible insurance for heterogeneous farmers: Results from a small-scale pilot in Ethiopia |
| title_full | Flexible insurance for heterogeneous farmers: Results from a small-scale pilot in Ethiopia |
| title_fullStr | Flexible insurance for heterogeneous farmers: Results from a small-scale pilot in Ethiopia |
| title_full_unstemmed | Flexible insurance for heterogeneous farmers: Results from a small-scale pilot in Ethiopia |
| title_short | Flexible insurance for heterogeneous farmers: Results from a small-scale pilot in Ethiopia |
| title_sort | flexible insurance for heterogeneous farmers results from a small scale pilot in ethiopia |
| topic | insurance |
| url | https://hdl.handle.net/10568/154398 |
| work_keys_str_mv | AT hillruthvargas flexibleinsuranceforheterogeneousfarmersresultsfromasmallscalepilotinethiopia AT roblesmiguel flexibleinsuranceforheterogeneousfarmersresultsfromasmallscalepilotinethiopia |