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Centre of expertise CIBIF

Faculty of Economics and Business
Centre of Expertise CIBIF

Weather insurance helps farmers in Ethiopia

19 December 2016
CIBIF conducts an experimental study to improve the use of weather insurance by farmers in Ethiopia. The research will be funded by the "International Initiative for Impact Evaluation (3ie)". The project involves CIBIF researchers Francesco Cecchi, Shubhashsi Gangopadhyay and Robert Lensink.

The study addresses problems that arise from liquidity constraints and lack of trust that decrease the willingness of farmers to buy weather insurance. To address this issue, CIBIF has developed a new insurance product where the farmer buying insurance commits to pay the premium after the uncertainty is resolved.

The study focuses on two main questions: (1) to what extent is it possible to enhance uptake of weather insurance products by delaying the payment of the premium, without inducing strategic default and (2) to what extent is it possible to increase uptake of weather insurance products in Ethiopia by selling the products via IDDIRs,  (informal) associations made up by a group of persons. The idea to include IDDIRs is to improve trust.

The pilot study started in June 2016 and will be completed in December 2017
Last modified:22 December 2016 2.13 p.m.

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