Informations et ressources scientifiques
sur le développement des zones arides et semi-arides

Innovations for Poverty Action

Titre : Insurance to Family Networks in Burkina Faso

Région /Pays : Burkina Faso

Date : 2017

Résumé
Rainfall insurance is a potentially cost-effective way to protect farmers in low-income countries from adverse weather events, but its adoption has been low. Marketing rainfall insurance to farmers’ urban relatives, who often help support their rural family members, may increase its use. Researchers partnered with micro-insurance organization Planet Guarantee to study the demand for a rainfall insurance product marketed to urban relatives of farmers in Burkina Faso. Researchers found that 22 percent of urban relatives offered the insurance purchased it, and that they were more likely to purchase if compensation was offered as direct payments to farmers rather than to the contract holder. A larger-scale study informed by these findings is now examining the long-term effects of rainfall insurance on demand for rainfall insurance among both urban migrants and rural households and its impact on the economic outcomes of the latter group.

Présentation _ Farmers in low-income countries face a significant risk from adverse weather events, and often rely on support from their relatives working in the city to cope with these events. Rainfall insurance, a type of agricultural insurance in which payout is linked to an index of rainfall data in the farmers’ region rather than individual claims, has been shown to alleviate this risk. However, rainfall insurance schemes have had low uptake where introduced. This lack of adoption may be due to a number of factors, such as cash constraints, lack of financial literacy, and lack of trust in the insurance provider among farmers. A more effective way of increasing insurance adoption may be to market it to the urban relatives of rural farmers, who tend to be easier to reach and more familiar with financial products, and are often already part of a network of familial support. This project examined if this marketing strategy could lead to greater uptake of rainfall insurance.

Taille de l’échantillon  : 400 rural households and 124 urban relatives

Innovation for Poverty Action (IPA)