Dynamics of Demand for Rainfall Index Insurance : Evidence from a Commercial Product in India
This paper analyzes the dynamic nature of rainfall insurance purchasing decisions. Customers of the Indan microfinance institution BASIX who receive an insurance payout are 9 to 22 percentage points more likely to purchase insurance the following year. This effect cannot be satisfactorily explained...
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Published by Oxford University Press on behalf of the World Bank
2020
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| Online Access: | http://hdl.handle.net/10986/33533 |
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okr-10986-335332021-05-25T10:54:42Z Dynamics of Demand for Rainfall Index Insurance : Evidence from a Commercial Product in India Stein, Daniel INSURANCE MICROFINANCE RAINFALL INDEX INSURANCE WEATHER SHOCKS This paper analyzes the dynamic nature of rainfall insurance purchasing decisions. Customers of the Indan microfinance institution BASIX who receive an insurance payout are 9 to 22 percentage points more likely to purchase insurance the following year. This effect cannot be satisfactorily explained by trust, learning, or direct effects ofweather, leading to the conclusion that it is driven by behavioral effects. Overall, low repurchasing rates even after payouts suggest that the studied rainfall index insurance products are likely to continue struggling to achieve significant sales at market prices. 2020-04-03T20:10:32Z 2020-04-03T20:10:32Z 2018-10 Journal Article World Bank Economic Review 1564-698X http://hdl.handle.net/10986/33533 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Published by Oxford University Press on behalf of the World Bank Publications & Research Publications & Research :: Journal Article South Asia India |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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INSURANCE MICROFINANCE RAINFALL INDEX INSURANCE WEATHER SHOCKS |
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INSURANCE MICROFINANCE RAINFALL INDEX INSURANCE WEATHER SHOCKS Stein, Daniel Dynamics of Demand for Rainfall Index Insurance : Evidence from a Commercial Product in India |
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South Asia India |
| description |
This paper analyzes the dynamic nature of rainfall insurance purchasing decisions. Customers of the Indan microfinance institution BASIX who receive an insurance payout are 9 to 22 percentage points more likely to purchase insurance the following year. This effect cannot be satisfactorily explained by trust, learning, or direct effects ofweather, leading to the conclusion that it is driven by behavioral effects. Overall, low repurchasing rates even after payouts suggest that the studied rainfall index insurance products are likely to continue struggling to achieve significant sales at market prices. |
| format |
Journal Article |
| author |
Stein, Daniel |
| author_facet |
Stein, Daniel |
| author_sort |
Stein, Daniel |
| title |
Dynamics of Demand for Rainfall Index Insurance : Evidence from a Commercial Product in India |
| title_short |
Dynamics of Demand for Rainfall Index Insurance : Evidence from a Commercial Product in India |
| title_full |
Dynamics of Demand for Rainfall Index Insurance : Evidence from a Commercial Product in India |
| title_fullStr |
Dynamics of Demand for Rainfall Index Insurance : Evidence from a Commercial Product in India |
| title_full_unstemmed |
Dynamics of Demand for Rainfall Index Insurance : Evidence from a Commercial Product in India |
| title_sort |
dynamics of demand for rainfall index insurance : evidence from a commercial product in india |
| publisher |
Published by Oxford University Press on behalf of the World Bank |
| publishDate |
2020 |
| url |
http://hdl.handle.net/10986/33533 |
| _version_ |
1764478973275799552 |