1 / 6

Impact Evaluation of Rainfall Insurance: Our Policy Outreach Strategy

Impact Evaluation of Rainfall Insurance: Our Policy Outreach Strategy. Presentation by Shahid Vaziralli , Head – Impact Evaluation, Center for Microfinance, IFMR January 12, 2011. Context. Agriculture is the primary livelihood activity for 2/3 of Indians – 800m people

travis
Download Presentation

Impact Evaluation of Rainfall Insurance: Our Policy Outreach Strategy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Impact Evaluation of Rainfall Insurance: Our Policy Outreach Strategy Presentation by ShahidVaziralli, Head – Impact Evaluation, Center for Microfinance, IFMR January 12, 2011

  2. Context • Agriculture is the primary livelihood activity for 2/3 of Indians – 800m people • Almost 70% of all Indian farms are rainfed – 560m people • Almost 90% of them cite unpredictable or inadequate rainfall as the major risk in their lives – 500m people • Studies have shown variations in rainfall to be the primary determinant of crop yields • Traditional area based crop insurance (NAIS) in India has been a failure • Due to lack of good risk mitigating instruments, farmers employ low risk – low return investment choices

  3. The Promise of Index Based Insurance • Quick payouts • Easy to Administer • Low Transaction Cost • Publicly observable • Traditional area based crop insurance (NAIS) in India has been a failure • Basis Risk • Complicated to Understand

  4. The Motivation for Research • What are the factors of demand? • How should we price policies? • How should we market policies? • How should we design policies? • Will it improve people’s lives?

  5. Results • The demand for insurance is extremely price sensitive • Trust and financial literacy are major barriers to demand • Insured farmers switched to riskier cash crops

  6. Policy Influence Strategy • Strong institutional partnerships between researchers and implementer • Agencies must be relevant and powerful • They must be invested in the results of the study • Trust • Open communication and feedback • Examples: Policy design, marketing • Dissemination • Conferences, publications etc • Targeted approach • Examples of high impact RCTs that may never affect public policy due to lack of strong partnership • Trust and financial literacy are major barriers to demand • Insured farmers switched to riskier cash crops

More Related