Publication:
Patterns of Rainfall Insurance Participation in Rural India

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dc.contributor.authorTownsend, Robert
dc.contributor.authorGine, Xavier
dc.contributor.authorVickery, James
dc.date.accessioned2012-06-11T15:10:28Z
dc.date.available2012-06-11T15:10:28Z
dc.date.issued2007-11
dc.description.abstractThis paper describes the contract design and institutional features of an innovative rainfall insurance policy offered to smallholder farmers in rural India, and presents preliminary evidence on the determinants of insurance participation. Insurance takeup is found to be decreasing in basis risk between insurance payouts and income fluctuations, increasing in household wealth and decreasing in the extent to which credit constraints bind. These results match with predictions of a simple neoclassical model appended with borrowing constraints. Other patterns are less consistent with the "benchmark" model; namely, participation in village networks and measures of familiarity with the insurance vendor are strongly correlated with insurance takeup decisions, and risk-averse households are found to be less, not more, likely to purchase insurance. We suggest that these results reflect household uncertainty about the product itself, given their limited experience with it.en
dc.identifierhttp://documents.worldbank.org/curated/en/2007/11/8738363/patterns-rainfall-insurance-participation-rural-india
dc.identifier.doi10.1596/1813-9450-4408
dc.identifier.urihttps://hdl.handle.net/10986/7646
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 4408
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESS TO CREDIT
dc.subjectACCOUNTING
dc.subjectACCURATE ESTIMATE
dc.subjectADDITIONAL INCOME
dc.subjectADMINISTRATIVE CHARGE
dc.subjectADMINISTRATIVE COSTS
dc.subjectADMINISTRATIVE RECORDS
dc.subjectAGENTS
dc.subjectAGRICULTURAL ECONOMICS
dc.subjectAGRICULTURAL INCOME
dc.subjectAGRICULTURAL INSURANCE
dc.subjectAGRICULTURAL SECTOR
dc.subjectASSET MARKETS
dc.subjectASYMMETRIC INFORMATION
dc.subjectBANK ACCOUNT
dc.subjectBANK FEES
dc.subjectBASIS RISK
dc.subjectBID
dc.subjectBORROWER
dc.subjectBORROWING
dc.subjectBUSINESS SCHOOL
dc.subjectBUYER
dc.subjectBUYERS
dc.subjectCALCULATION
dc.subjectCALCULATIONS
dc.subjectCOLLATERAL
dc.subjectCOMMODITY
dc.subjectCOMMODITY PRICE
dc.subjectCONSUMER
dc.subjectCONSUMPTION SMOOTHING
dc.subjectCONTRACT DESIGN
dc.subjectCOVERAGE
dc.subjectCREDIT AVAILABILITY
dc.subjectCREDIT CONSTRAINTS
dc.subjectCREDIT INSTITUTION
dc.subjectCREDIT OUTSTANDING
dc.subjectCREDIT PRODUCTS
dc.subjectCREDIT RATIONING
dc.subjectCREDIT WORTHINESS
dc.subjectCROP FAILURE
dc.subjectCROP INSURANCE
dc.subjectCROP INSURANCE SCHEME
dc.subjectCROP LOAN
dc.subjectCROP LOANS
dc.subjectDEBT
dc.subjectDEBTOR
dc.subjectDEFAULTS
dc.subjectDEGREE OF RISK
dc.subjectDEPOSITS
dc.subjectDEVELOPING COUNTRIES
dc.subjectDISCOUNT RATE
dc.subjectDISCOUNT RATES
dc.subjectDROUGHT
dc.subjectDUMMY VARIABLE
dc.subjectDUMMY VARIABLES
dc.subjectEDUCATION LEVEL
dc.subjectEQUILIBRIUM MODELS
dc.subjectEXCHANGE RATE
dc.subjectEXPENDITURE
dc.subjectEXPENDITURES
dc.subjectFAMILY MEMBERS
dc.subjectFARMER
dc.subjectFEDERAL RESERVE
dc.subjectFEDERAL RESERVE BANK
dc.subjectFEDERAL RESERVE BANK OF NEW YORK
dc.subjectFINANCIAL CONSTRAINTS
dc.subjectFINANCIAL INNOVATIONS
dc.subjectFINANCIAL INSTITUTION
dc.subjectFINANCIAL PRODUCT
dc.subjectFINANCIAL SERVICES
dc.subjectFINANCIAL SYSTEMS
dc.subjectFIRE INSURANCE
dc.subjectFIXED COSTS
dc.subjectFORMAL EDUCATION
dc.subjectFORMAL FINANCIAL INSTITUTION
dc.subjectFORMAL FINANCIAL INSTITUTIONS
dc.subjectFUTURE INCOME
dc.subjectGENDER
dc.subjectGOVERNMENT ASSISTANCE
dc.subjectGOVERNMENT CROP INSURANCE
dc.subjectGOVERNMENT SUBSIDIES
dc.subjectGROSS REVENUE
dc.subjectGROUP LENDING
dc.subjectHEALTH INSURANCE
dc.subjectHIGH INTEREST RATES
dc.subjectHOUSEHOLD INCOME
dc.subjectHOUSEHOLD WEALTH
dc.subjectHOUSEHOLDS
dc.subjectIMPERFECT INFORMATION
dc.subjectINCOME
dc.subjectINCOME SHOCKS
dc.subjectINCOME SMOOTHING
dc.subjectINCOME VOLATILITY
dc.subjectINSURANCE
dc.subjectINSURANCE BUYERS
dc.subjectINSURANCE CLAIMS
dc.subjectINSURANCE CONTRACTS
dc.subjectINSURANCE EXPENDITURES
dc.subjectINSURANCE MARKET
dc.subjectINSURANCE MARKETS
dc.subjectINSURANCE POLICIES
dc.subjectINSURANCE POLICY
dc.subjectINSURANCE PRODUCT
dc.subjectINSURANCE SCHEME
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectJOB LOSS
dc.subjectLACK OF COLLATERAL
dc.subjectLACK OF CREDIT
dc.subjectLANDOWNER
dc.subjectLIFE INSURANCE
dc.subjectLIQUID ASSETS
dc.subjectLIQUID SAVINGS
dc.subjectLOAN
dc.subjectLOAN APPLICATIONS
dc.subjectLOCAL AREA BANK
dc.subjectLOCAL FINANCIAL INSTITUTIONS
dc.subjectLUMP SUM
dc.subjectMARKET VALUE
dc.subjectMARKETING
dc.subjectMICRO-CREDIT
dc.subjectMICRO-INSURANCE
dc.subjectMICROCREDIT
dc.subjectMICROFINANCE
dc.subjectMICROFINANCE INSTITUTION
dc.subjectMICROFINANCE LOANS
dc.subjectMICROINSURANCE
dc.subjectMIGRATION
dc.subjectMITIGATION
dc.subjectMORAL HAZARD
dc.subjectOUTSTANDING CREDIT
dc.subjectPENETRATION RATE
dc.subjectPENSIONS
dc.subjectPOLICY DESIGN
dc.subjectPOLICYHOLDERS
dc.subjectPREMIUM RATE
dc.subjectPREMIUMS
dc.subjectPRICE CHANGES
dc.subjectPROBABILITIES
dc.subjectPROBABILITY
dc.subjectPROGRAM COSTS
dc.subjectPROGRAMS
dc.subjectPURCHASES
dc.subjectREINSURERS
dc.subjectRESERVE BANK
dc.subjectRETURN
dc.subjectRETURNS
dc.subjectREVOLVING FUNDS
dc.subjectRISK AVERSION
dc.subjectRISK SHARING
dc.subjectSALES
dc.subjectSALES REVENUE
dc.subjectSAVINGS
dc.subjectSELF-EMPLOYMENT
dc.subjectSMALL BUSINESS
dc.subjectSMALL BUSINESS OWNER
dc.subjectSMALLHOLDER
dc.subjectSMALLHOLDER FARMERS
dc.subjectSMALLHOLDERS
dc.subjectSOCIAL DEVELOPMENT
dc.subjectSOCIAL NETWORKS
dc.subjectTAX
dc.subjectTECHNICAL ASSISTANCE
dc.subjectVILLAGE
dc.subjectVILLAGES
dc.subjectVULNERABLE HOUSEHOLDS
dc.subjectWAGES
dc.titlePatterns of Rainfall Insurance Participation in Rural Indiaen
dspace.entity.typePublication
okr.crossref.titlePatterns Of Rainfall Insurance Participation In Rural India
okr.date.doiregistration2025-04-10T10:17:12.906619Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2007/11/8738363/patterns-rainfall-insurance-participation-rural-india
okr.globalpracticeFinance and Markets
okr.guid500731468042030393
okr.identifier.doi10.1596/1813-9450-4408
okr.identifier.externaldocumentum000158349_20071120140032
okr.identifier.internaldocumentum8738363
okr.identifier.reportWPS4408
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/11/20/000158349_20071120140032/Rendered/PDF/wps4408.pdfen
okr.region.administrativeSouth Asia
okr.region.countryIndia
okr.topicFinance and Financial Sector Development::Access to Finance
okr.topicBanks and Banking Reform
okr.topicInsurance and Risk Mitigation
okr.topicFinance and Financial Sector Development::Debt Markets
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublication460a3e9c-f7d0-5335-977a-578f6fc8ebe3
relation.isAuthorOfPublication.latestForDiscovery460a3e9c-f7d0-5335-977a-578f6fc8ebe3
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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