Parametric insurance and technology adoption in developing countries

Enrico Biffis (), Erik Chavez (), Alexis Louaas and Pierre Picard
Additional contact information
Enrico Biffis: Imperial College Business School
Erik Chavez: Imperial College Business School
Alexis Louaas: CREST, Ecole Polytechnique

The Geneva Risk and Insurance Review, 2022, vol. 47, issue 1, No 3, 7-44

Abstract: Abstract Technology adoption is crucial for the development of low-income countries. This paper investigates how parametric insurance can contribute to improving access to finance, and hence to technology, for smallholder farmers. In a model with moral hazard, we show that bundling parametric insurance with loans may lower collateral requirements, thus promoting the financial inclusion of poor households. The case of agricultural input loans and weather-index insurance is studied in detail and related to bundled finance solutions recently piloted among smallholder farmers in Tanzania.

Keywords: Parametric insurance; Crop insurance; Moral hazard; Credit rationing; Technology adoption (search for similar items in EconPapers)
JEL-codes: G22 O16 Q14 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Working Paper: Parametric insurance and technology adoption in developing countries (2020)
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DOI: 10.1057/s10713-020-00061-0

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