Demand for rainfall-index based insurance: a case study from Morocco

In this paper, we derive estimates for willingness to pay for rainfall-index based insurance contracts. Surveys were undertaken in four regions in Morocco, representing different mean and variability of rainfall conditions. Results indicate that respondents in the high variability regions preferred...

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Autor principal: McCarthy, Nancy
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2003
Materias:
Acceso en línea:https://hdl.handle.net/10568/158095
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author McCarthy, Nancy
author_browse McCarthy, Nancy
author_facet McCarthy, Nancy
author_sort McCarthy, Nancy
collection Repository of Agricultural Research Outputs (CGSpace)
description In this paper, we derive estimates for willingness to pay for rainfall-index based insurance contracts. Surveys were undertaken in four regions in Morocco, representing different mean and variability of rainfall conditions. Results indicate that respondents in the high variability regions preferred contracts that paid out more often (had higher rainfall trigger levels), and which were more costly. In fact, a strong majority of respondents indicated they would purchase these contracts at the fair-value price; the estimated median willingness to pay for such contracts was between 12-20 percent above the fair value contract. However, in the lower rainfall variability regions, the cheaper contracts with lower trigger values were the only contracts for which the estimated median willingness to pay was greater than the fair-value of the contract. Finally, estimated coefficients for explanatory variables such as human and physical assets, debt levels, etc. did not have consistent impacts, either across or within regions.
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spelling CGSpace1580952025-11-06T05:44:11Z Demand for rainfall-index based insurance: a case study from Morocco McCarthy, Nancy agricultural insurance rainfall consumer behaviour dry farming In this paper, we derive estimates for willingness to pay for rainfall-index based insurance contracts. Surveys were undertaken in four regions in Morocco, representing different mean and variability of rainfall conditions. Results indicate that respondents in the high variability regions preferred contracts that paid out more often (had higher rainfall trigger levels), and which were more costly. In fact, a strong majority of respondents indicated they would purchase these contracts at the fair-value price; the estimated median willingness to pay for such contracts was between 12-20 percent above the fair value contract. However, in the lower rainfall variability regions, the cheaper contracts with lower trigger values were the only contracts for which the estimated median willingness to pay was greater than the fair-value of the contract. Finally, estimated coefficients for explanatory variables such as human and physical assets, debt levels, etc. did not have consistent impacts, either across or within regions. 2003 2024-10-24T12:53:48Z 2024-10-24T12:53:48Z Working Paper https://hdl.handle.net/10568/158095 en Open Access application/pdf International Food Policy Research Institute McCarthy, Nancy. 2003. Demand for rainfall-index based insurance: a case study from Morocco. EPTD Discussion Paper 106. https://hdl.handle.net/10568/158095
spellingShingle agricultural insurance
rainfall
consumer behaviour
dry farming
McCarthy, Nancy
Demand for rainfall-index based insurance: a case study from Morocco
title Demand for rainfall-index based insurance: a case study from Morocco
title_full Demand for rainfall-index based insurance: a case study from Morocco
title_fullStr Demand for rainfall-index based insurance: a case study from Morocco
title_full_unstemmed Demand for rainfall-index based insurance: a case study from Morocco
title_short Demand for rainfall-index based insurance: a case study from Morocco
title_sort demand for rainfall index based insurance a case study from morocco
topic agricultural insurance
rainfall
consumer behaviour
dry farming
url https://hdl.handle.net/10568/158095
work_keys_str_mv AT mccarthynancy demandforrainfallindexbasedinsuranceacasestudyfrommorocco