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Microinsurance decisions: Evidence from Ethiopia

May 31, 2012 | D. Clarke, G. Kalani | ILO, Microinsurance Innovation Facility
This study reviews evidence collected from a microinsurance field experiment in rural Ethiopia which involves collecting data from individuals in order to predict the shape of the demand curve for indexed insurance. The study finds that the relationship between demand for index insurance and wealth levels is none linear and that individuals with intermediate levels of wealth have the highest demand while the richest and the poorest exhibited much lower demand.