Technical Report Temperature and Rainfall Index Insurance in India

Matsuda, Ayako  ,  Kurosaki, Takashi

DP-2017-E-002pp.1 - 49 , 2017-04-19 , Osaka School of International Public Policy
Weather index insurance has been attracting much attention from academics and policy makers. This paper investigates the demand for temperature and rainfall index insurance in India using the data from randomized subsidy experiments. We find that price, income and asset levels influence the demand for both temperature and rainfall insurance. We also show that richer farmers are less price-sensitive and farmers’response to the discount becomes less price-sensitive as the amount of discount increases. Non-price factors such as age and education level of a respondent are important correlates. Purchase decisions are also influenced by individual prior experience and society experience of insurance.

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