Ana Marr|Anne Winkel|Marcel van Asseldonk|Robert Lensink|Erwin Bulte
Adoption and impact of index-insurance and credit for smallholder farmers in developing countries
University of Greenwich|University of Groningen|Wageningen University & Research|University of Groningen|Wageningen University & Research
purpose purpose paper review recent scientific literature determinants explaining demand indexinsurance impact indexinsurance existing links insurance credit metaanalysis authors identify key discoveries potential indexinsurance enhancing credit supply smallholders thus farm productivity designmethodologyapproach following systematic literature search scopus web science relevant empirical articles identified using following criteria search algorithm insurance weather micro areabased rain livestock index empiric experiment trial rct impact credit loan debt finance authors identified 1133 related papers 110 selected closely matching study criteria removing duplicates analysing document 45 papers included current analysis framework addressing insurance credit issues paper entails three subsequent themes namely adoption insurance impact insurance links insurance credit findings confirmed yet demand insurance indeed humpshaped risk aversion functional form relationship tested detail also holds magnitude effect trust education actual demand furthermore unclear extent risk mitigation strategies form complements substitutes indexinsurance lastly interaction basis risk price important design indexinsurance products basis risk price elasticity indeed highly correlated products diminish basis risk crucial increasing demand impact bundled products eg combination insurance credit limited empirical research conducted example unknown extent credit suppliers would react insured status farmers preferences farmers comes mix financial products addition several researchers suggested microfinance institutions banks could insure covariate risk yet empirical evidence insurance mechanism conducted far research limitationsimplications authors based research scientific literature uploaded scopus web science potentially insightful grey literature included due lack accessibility given research findings plenty opportunity research particularly regard effects bundled products eg insurance plus credit demand indexinsurance supply credit loan conditions impact farm productivity farmers wellbeing practical implications microfinance institutions insurance companies ngos research institutions universities particularly developing countries interested learn systematic review scientific research done area insurance credit agriculture possibilities application practice supplying financial products social implications rigorous understanding potential indexinsurance credit essential identifying right mix financial products help smallholder farmers increase farm productivity wellbeing originalityvalue paper valuable due rigorous evaluation existing theoretical empirical research around issues explaining degree adoption impact indexinsurance bundled financial products ie indexinsurance plus credit paper potential become essential reading academics practitioners policymakers interested researching putting practice best options leading greater farm productivity wellbeing developing countries