IFPRI-Agricultural Insurance for small holder farmers in developing countries-Bidisha Barooah
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Agricultural Insurance for small holder farmers in developing countries
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IFPRI-Agricultural Insurance for small holder farmers in developing countries-Bidisha Barooah
- 1. Agricultural insurance for small holder farmers in developing countries: What do we know? Bidisha Barooah, Jo Puri, Bharat Kaushish, Ombeline de Bock, Jesse D’Anjou and Tatiana Goetghebuer
- 3. Why Agricultural Insurance? • A possible way to break the vicious poverty cycle • Does (can) it work? –Informal risk mitigation –Other instruments of risk mitigation
- 4. • What do we know about the state and quality evidence in this field? • Where are the opportunities and challenges for researchers? • What are the areas of interest for policy makers? Objectives of this scoping study
- 5. Scope of our study • Impact evaluation studies and systematic reviews • ‘Real’ products • LMICs • 1996-2015 • Assessment of quality /inputs
- 6. Systematic Search Manual search Papers identified through manual search (e.g. snowball searching, specialist websites) Electronic search Papers identified through electronic searching on electronic databases 10203 references 702 references identified 9501 references identified 5095 references excluded (screened for duplicates and relevant title) 5108 references identified in total Abstract screening 4866 references excluded (out of scope and/or inclusion criteria) 241 references remain 102 acquisition of reports 10 reports not obtained 139 references excluded (131 based on exclusion criteria, 6 duplicates, 2 no English version) 59 included papers
- 7. Number of studies by intervention/product type 0 5 10 15 20 25 30 8c. Other Services, please specify 8b. Advice on risk management and extension… 8a. Financial literacy/ product training 7. Other Products (Specify) 6. Innovative/Improved product 5. Bundled Product 4. Social Protection Schemes 3. Agricultural Technology/Inputs 2. Informal risk mitigating financial instruments 1e. Direct Subsidy/Grant/Transfer 1d. Formal agricultural risk-related savi.. 1c. Formal agricultural risk-related credit 1b. Index Insurance 1a. Formal Yield/Indemnity Insurance
- 8. Number of studies by outputs/outcomes 0 5 10 15 20 25 30 35 40 45 50
- 9. Results I • 32 studies are RCTs • Risk of bias • Other quasi-experimental methods do better
- 10. Results II • 6 studies on insurance and food security Country Variable Results Gendered impacts Ethiopia Reduced meals (binary) Significant reduction No Ghana Self-reported reduced meals (binary) Significant reduction No Mexico Consumption expenditure including food Significant increase No Colombia Food consumption expenditure No impact No Senegal/Burkin a Faso Food insecurity index/ Meat and onions in diet Significant increase But uptake lower among women India Qualitative input Unclear No
- 11. Discussion • Uptake of insurance is low • Median uptake of index insurance 33%, despite ‘encouragement design’Possible reasons for low uptake (ref: ILO) • Liquidity constraints • Trust • Poor insurance understanding/financial literacy • Other risk coping strategies • Behavioral factors Very little discussion on adequacy of the product
- 12. Conclusion • IE of agricultural insurance on women has been not been studied much • “Edge of MDE” • For credible gender effects sample size need to double- costs four times
- 13. Thank you
Editor's Notes
- Some of the world’s poorest and most vulnerable people are engaged in agriculture and food production. These are women, small-scale farmers and the landless. Agriculture is a risky business and with increasing climate and weather related risks vulnerability is increasing as well.
- Insurance is being increasingly discussed as an instrument to reduce the farmer risks and to get people out of traps of low productivity and poverty. There has been a lot of interest in this field primarily with the development of index based insurance such as weather-index insurance. Attractive for insurers because it is supposed to reduce moral hazard and monitoring and operational costs. Insurance is also being used by governments as social protection schemes by subsidizing premiums instances in India, Nepal, Bolivia. There seems to be a market for insurance at least on the supply side. But what do we know about impacts. So does insurance work? Can insurance work? This particularly has to analysed given that there are tons of informal risk mitigation strategies adopted by households and at the community level. Studies by Binswanger, Rosenzweig and Townsend have discussed how households adapt to risks by changing consumption patterns as well as the role of social networks. Similarly, there are other financial and non-financial instruments of reducing risk. Lot of evidence on credit, saving, microfinance on reducing vulnerability and particularly for women. Nice part is some are customized for women for example SHGs in India
- There are some very high quality literature reviews on insurance already. For example by Cole et al 2012, De Janvry and other 2014, Dercon et al , De bock and Gelade (microinsurance). So where do we come? Our scope is wider but also niche. Search strategy upto July 2015 so some updation is required. Lab/Lab-in-field excluded. Advantages of systematic search…..
- Not mutually exclusive. Explain this
- Not mutually exclusive. Explain food consumption and consumption. Not only coefficients but also means
- There are qualitative studies and other non Ies that have however found impacts on food security. What does our study show?
- So why has there been so less focus on food security and gendered-impacts? One possible reason may be…renewals are low. Incidentally, take up is higher for yield/area insurance among the studies that do report uptake. This has been highlighted by a number of stakeholders including researchers. Have you asked people if they think the product addresses their needs?