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on Microfinance |
| By: | Jofre-Bonet, Mireia; Kamara, Joseph |
| Abstract: | Purpose The objective of this project is to study the willingness to pay (WTP) for health insurance (HI) of individuals working in the informal sector in Sierra Leone, using a purposely-designed survey of a representative sample of this sector. Methods We elicit the WTP using the Double-Bounded Dichotomous Choice with Follow Up method. We also examine the factors that are positively and negatively associated with the likelihood of the respondents to answer affirmatively to joining a HI scheme and to paying three different possible premiums, to join the HI scheme. We additionally analyze the individual and household characteristics associated with the maximum amount the household is willing to pay to join the HI scheme. Results The results indicate that the average WTP for the HI is 20,237.16 SLL (3.6 USD) per adult but it ranges from about 14,000 SLL (2.5 USD) to about 35,000 SLL (6.2 USD) depending on region, occupation, household and respondent characteristics. The analysis of the maximum WTP indicates that living outside the Western region and working in farming instead of petty trade are associated with a decrease in the maximum premium respondents are WTP for the HI scheme. Instead, the maximum WTP is positively associated to being a driver or a biker; having secondary or tertiary education (as opposed to not having any); the number of pregnant women in the household; having a TV; and, having paid for the last medical requirement. Conclusions In summary, the various analyses show that a premium for the HI package could be set at approximately 20,000 SLL (3.54 USD) but also that establishing a single premium for all individuals in the informal sector could be risky. The efficient functioning of a HI scheme relies on covering as much of the population as possible, in order to spread risks and make the scheme viable. The impact of the various population characteristics raises the issue of how to rate premiums. In other words, setting a premium that may be too high for a big proportion of the population could mean losing many potential enrollees and might have viability consequences for the operation of the scheme. |
| JEL: | J1 |
| Date: | 2018–05–16 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:89836&r=mfd |
| By: | Mude, Andrew |
| Abstract: | The International Livestock Research Institute (ILRI) together with its partners launched a pilot index-based livestock insurance (IBLI) product in January 2010 in the Marsabit District of northern Kenya. It has since been scaled across the drylands of Kenya, and is also gaining momentum in Ethiopia where a pilot insurance project was launched in 2012. One problem inspired ILRI’s IBLI agenda: finding a sustainable way to help pastoralists to recover quickly from the considerable losses they incur during severe droughts. Over the years, evidence of IBLI impact and value for money, and continued research and development on product design, as well as innovations along the service delivery chain, have helped with uptake, in convincing governments and development partners of its importance as a risk management tool, and have won IBLI a plethora of international awards.Briefly describing the key elements of the IBLI agenda, this presentation focuses on how the IBLI team leveraged a suite of digital technologies – largely mobile based – to help surmount some of the main obstacles to the provision of IBLI. Even in the sparsely populated drylands of northern Kenya, which the IBLI product targets, socioeconomic evolution has resulted in a growing density of mobile network coverage and a proliferation of mobile phone ownership, and use. Exploiting this trend, the IBLI team and partners have developed mobile applications for offline sales transactions and drastically reduced the cost and time to delivery of indemnity payments, as well as a whole host of other applications in information exchange and knowledge dissemination. |
| Keywords: | Agricultural Finance, Livestock Production/Industries |
| Date: | 2017–08–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cfcp17:266633&r=mfd |
| By: | Zhang, Jing; Brown, Colin; Waldron, Scott |
| Abstract: | The paper extends on the literature assessing China’s current “policy-oriented” agricultural insurance crop system to understand and to investigate the factors influencing the relative merits and potential demand for weather index crop insurance as a means for individual farmers in rural China to cope with weather-related production risks. Using the case of Huojia County in Henan Province, an empirical analysis is conducted of information collected from households’ survey and interviews with local village leaders. The key finding is that there is a significant potential demand for weather index crop insurance product as households seek time-efficient risk management strategies although this demand is influenced by generally poor awareness of insurance, small areas, and relatively low profitability of crop production. |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy, Risk and Uncertainty |
| Date: | 2017–02–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare17:258683&r=mfd |