Insuring Against the Weather: Integrating Generic Weather Index Products With Group-Based Savings and Loans

Research Questions

How can generic weather index products be designed and combined with network based savings, gifts and loans to insure some of the basis risk inherent in these products?
What are the merits of linking insurance and credit?
Does marketing a group insurance product increase take-up and welfare outcomes?
What is the impact of insurance on borrowing behavior?

Partner organizations

Bangladesh Rural Advancement Committee (BRAC)

Product

Evaluation design

Experimental

Project website(s)

Location
Bangladesh and Ethiopia

Timeframe
October 2010 - September 2013

Status
Design

Type of insurance
Agricultural (weather)

Researchers
Carlos Martins-Filho
University of Colorado, Boulder

Alemayehu Seyoum Taffesse
International Food Policy Research Institute

Stefan Dercon
University of Oxford

Ruth Vargas-Hill
International Food Policy Research Institute

Funder
Index Insurance Innovation Initiative (I4)Index Insurance Innovation Initiative (I4)