The drivers of index-based livestock insurance demand in southern Ethiopia

Read the latest post in the Economics That Really Matters blog that details the findings of a paper written by Index-Based Livestock Insurance (IBLI) Project researchers. Recently published in World Development, the paper examines and identifies the constraints that hinder the demand of index insurance in southern Ethiopia—uptake of index insurance has been disappointingly low, rarely above 30% of the intended population, across the several contexts in which it has been introduced, despite claims that index insurance has several advantages over traditional agricultural insurance in reducing moral hazard, adverse selection, and transaction costs associated with verification of individual losses.

Read the full article here

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