New Insurance Findings from University Gottingen Described (Digital Opportunities for the Distribution of Index-based Microinsurance: Evidence From a Discrete Choice Experiment In Mali): Insurance

2024 MAY 16 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Research findings on Insurance are discussed in a new report. According to news reporting out of Gottingen, Germany, by NewsRx editors, research stated, “Index-based microinsurance is a promising risk management tool for smallholder farmers. Recently, several mobile-delivered insurance schemes have entered the market.”

Funders for this research include Bundesministerium fr Wirtschaftliche Zusammenarbeit und Entwicklung, ADA Microfinance, Federal Ministry for Economic Cooperation and Development of Germany (BMZ).

Our news journalists obtained a quote from the research from University Gottingen, “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.”

According to the news editors, the research concluded: “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.”

This research has been peer-reviewed.

For more information on this research see: Digital Opportunities for the Distribution of Index-based Microinsurance: Evidence From a Discrete Choice Experiment In Mali. Journal of Agricultural Economics, 2024. Journal of Agricultural Economics can be contacted at: Wiley, 111 River St, Hoboken 07030-5774, NJ, USA. (Wiley-Blackwell - http://www.wiley.com/; Journal of Agricultural Economics - http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1477-9552)

Our news journalists report that additional information may be obtained by contacting Ella Kirchner, University Gottingen, Dept. of Agricultural Economics and Rural Development, Gottingen, Germany.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1111/1477-9552.12584. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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