Farmers face enormous production risks due to unpredictable rainfall, yet most do not have any formal insurance. One explanation for this is the existence of informal network-based risk sharing. Using a randomized controlled experiment, we study the demand for, and effects of, offering formal index-based rainfall insurance in an environment of tightly knit informal risk sharing networks: sub-ca...

We examine the demand for risk classification insurance with fuzzy private information using an expected utility set-up. We first demonstrate that standard assumptions on private information cannot explain the observed demand for risk classification insurance. By allowing for fuzzy heterogeneous private information, we show that a unique equilibrium exists that can be of the form that some of t...

This paper presents preliminary findings from a research project that examines the interaction between informal risk sharing, index insurance and risk-taking. We have randomized rainfall insurance contracts offered to cultivating and landless households in a set of Indian villages where pre-existing census data on caste networks allows us to characterize the nature and extent of informal risk s...

There are fragmentations in Iran’s health insurance system. Multiple health insurance funds exist, without adequate provisions for transfer or redistribution of cross subsidy among them. Multiple risk pools, including several private secondary insurance schemes, have resulted in a tiered health insurance system with inequitable benefit packages for different segments of the population. Also fra...

Risk insurance mechanisms have been proposed as proactive policy options to enhance the resilience of communities for coping with extreme events. Many risk insurance mechanisms require designation of ‘‘risk zones’’ to legalize governmental interventions. After a three-day workshop and ensuing interviews, ‘‘wicked’’ challenges were identified in the designation of risk zones: risk thresholds; la...

abstract agriculture activity is obvious type of unsafely and risky activities that this part had dealt with lack of trast about amount of production and price as unpleasant atmosphere phenomona, calamities, kind of plant diseases and change in prices. insurance is one of important cases for decreasing risk in agriculture. the main of this research is consideration crop insurance’s affect on op...

The financial incentives offered by the risk-based pricing of insurance can stimulate policyholder adaptation to flood risk while potentially conflicting with affordability. We examine the trade-off between risk reduction and affordability in a model of public-private flood insurance in France and Germany estimating household flood adaptation decisions in response to financial insurance incenti...

Seismic risk can be reduced by implementing newly developed seismic provisions in design codes. Furthermore, financial protection or enhanced utility and happiness for stakeholders could be gained through the purchase of earthquake insurance. If this is not so, there would be no market for such insurance. However, perceived benefit associated with insurance is not universally shared by stakehol...

Analysis of new data on the relationship between and premiums and coverage in the individual insurance market and health risk shows that actual premiums paid for individual insurance are much less than proportional to risk, and risk levels have a small effect on obtaining coverage. States limiting risk rating in individual insurance display lower premiums for high risks than other states, but s...