Impact Evaluation and Product Design of Weather Insurance

• What is the impact of providing rainfall insurance on income, consumption and investment decisions of households?
• What determines the take-up of rainfall insurance?

Partner organizations

Founded in 1972 in Ahmedabad, India, Self Employed Women's Association (SEWA) is a trade union for poor, self-employed women workers. SEWA offers a variety of supportive services to its members, including savings and credit, health care, child care, insurance, legal aid, capacity building and communication services. In addition to its weather insurance product, it also offers a composite life, health, and property insurance product.

Product

SEWA has created a weather insurance product for its members. It has a premium between USD $2.60 - $3.44, depending on the location of the purchase. The product provides payout in the case of deficient or excessive rainfall as measured at a local weather station.

Between 2008-2010, the product was underwritten by the Agricultural Insurance Company of India.

Evaluation design

Experimental

Data Sources

• Administrative data: local weather station's rainfall data
• Surveys: household surveys on socio-economic characteristics, access to financial services, agricultural land use, risk-seeking behavior and time preferences, financial literacy

Sample size

Approximately 2,000 households.

Project website(s)