Selling Formal Insurance to the Informally Insured

A. Mushfiq Mobarak, Mark Rosenzweig

2012

Unpredictable rainfall is an important risk for agricultural activity, and farmers in developing countries often receive incomplete insurance from informal risk-sharing networks. This paper presents findings from a study that examines the demand for, and effects of, offering formal index-based rainfall insurance through a randomized experiment in an environment where the informal risk sharing network can be readily identified and richly characterized: sub-castes in rural India.

Type

Working Paper

Thematic Area

Financial Well-being and Social Protection