Digital opportunities for the distribution of index-based microinsurance: Evidence from a discrete choice experiment in Mali

IF 3.4 2区 经济学 Q1 AGRICULTURAL ECONOMICS & POLICY
Ella Kirchner, Oliver Musshoff
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Abstract

Index-based microinsurance is a promising risk management tool for smallholder farmers. Recently, several mobile-delivered insurance schemes have entered the market. Depending on the degree of digitisation of the product, farmers can learn about the insurance, register, pay premiums and receive payouts via a mobile phone. As cell phone usage and network coverage constantly increase, digitally enabled insurance distribution may overcome previous barriers for insurance adoption. Still, farmers' preferences for these products remain largely unknown. We address this knowledge gap by means of a discrete choice experiment applied to 499 maize farmers in Mali. The experiment presents an easy-to-understand multi-peril crop insurance linked to a greenness index. It focuses on attributes related to the distribution channel and product design. Using mixed logit models, we find that the insurance attributes enabled by mobile-delivery are attractive to farmers. Product bundles that include mobile-delivered weather information and agricultural advice in addition to the insurance policy or credit access increase the likelihood of farmers taking out insurance. Similarly, recommendations from fellow farmers increase interest in the insurance product. The results are highly relevant for future product improvements that are needed to increase adoption rates and ultimately realise the loss-hedging potential of microinsurance.

Abstract Image

基于指数的小额保险分销的数字机遇:马里离散选择实验的证据
基于指数的小额保险对于小农来说是一种很有前景的风险管理工具。最近,一些移动交付的保险计划已进入市场。根据产品的数字化程度,农民可以通过手机了解保险、注册、支付保费和领取赔款。随着手机使用率和网络覆盖率的不断提高,数字化的保险分销可能会克服以往采用保险的障碍。然而,农民对这些产品的偏好在很大程度上仍是未知数。我们通过一项针对马里 499 位玉米种植农户的离散选择实验来填补这一知识空白。该实验介绍了一种与绿色指数挂钩的易懂的多风险农作物保险。实验重点关注与分销渠道和产品设计相关的属性。利用混合 logit 模型,我们发现移动交付所带来的保险属性对农民很有吸引力。除了保险单或信贷渠道外,还包括移动交付的天气信息和农业建议的产品捆绑会增加农民投保的可能性。同样,农民朋友的推荐也会提高对保险产品的兴趣。研究结果与未来的产品改进高度相关,这些改进是提高采用率并最终实现小额保险的损失对冲潜力所必需的。
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来源期刊
Journal of Agricultural Economics
Journal of Agricultural Economics 管理科学-农业经济与政策
CiteScore
7.90
自引率
2.90%
发文量
48
审稿时长
>24 weeks
期刊介绍: Published on behalf of the Agricultural Economics Society, the Journal of Agricultural Economics is a leading international professional journal, providing a forum for research into agricultural economics and related disciplines such as statistics, marketing, business management, politics, history and sociology, and their application to issues in the agricultural, food, and related industries; rural communities, and the environment. Each issue of the JAE contains articles, notes and book reviews as well as information relating to the Agricultural Economics Society. Published 3 times a year, it is received by members and institutional subscribers in 69 countries. With contributions from leading international scholars, the JAE is a leading citation for agricultural economics and policy. Published articles either deal with new developments in research and methods of analysis, or apply existing methods and techniques to new problems and situations which are of general interest to the Journal’s international readership.
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