Impact of index insurance on downside income risk: Evidence from northern Kenya

Kelvin Mashisia Shikuku and Ibrahim Ochenje

Applied Economic Perspectives and Policy, 2025, vol. 47, issue 2, 863-891

Abstract: We assessed the impact of index‐based livestock insurance (IBLI) on household income and its higher‐order moments (i.e., variance and skewness). The study uses four waves of panel survey data from northern Kenya and applies a two stage least squares (2SLS) instrumental variables regression to estimate the causal impacts. We found that uptake of IBLI increased household income and reduced pastoralists' exposure to downside risk. Our results imply that policies and investments promoting the scaling of index insurance will be effective for climate risk management and welfare improvement in Sub‐Saharan Africa by increasing income and reducing exposure to downside risk.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/aepp.13497

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:apecpp:v:47:y:2025:i:2:p:863-891

Access Statistics for this article

More articles in Applied Economic Perspectives and Policy from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().