The impact of bundling index insurance with credit and input vouchers: Experimental evidence from Ethiopia
This is an in-person event; please RSVP for catering purposes.
The African Centre of Excellence for Inequality Research (ACEIR) and the Southern Africa Labour and Development Research Unit of the University of Cape Town invite you to a seminar by Prof. Robert Lensink from the University of Groningen in the Netherlands.
About the seminar
With a randomised controlled trial and a rigorous analysis of the impact of index insurance bundled with credit and access to inputs, this study provides a comparison of standalone index insurance with a bundled product in terms of uptake and impact. The trial provides farmers with a delayed premium option as a means to address liquidity constraints and increase trust in the insurance provider, which can enhance uptake of insurance.
The results show that bundling insurance products and the delayed premium option both increase the uptake of insurance. The delayed premium option also increases consumption, though its effect on increasing investments in agricultural inputs is not significant. Moreover, a package comprised of insurance, credit, and inputs significantly increase both consumption and investments in agricultural inputs while a standalone index insurance product only increases consumption. Thus, bundling insurance with credit and agricultural input options can make insurance products more valuable.
About the speaker
Robert Lensink is a Professor of Finance and Financial Markets within the Department of Economics, Econometrics and Finance at the University of Groningen (UG) in the Netherlands. He is currently the Vice-Dean for Research of the UG’s Faculty of Economics and Business and the Director of the research institute FEBRI. Prof. Lensink is a Professor Extraordinary at the University of Stellenbosch Business School, South Africa, and a resource person of the African Economic Research Consortium. He also is a full member of the European Development Network and associated to the School of Oriental and African Studies at the University of London; the Centre for European Research in Microfinance; and the European Development Research Network. Robert Lensink is a member of the steering committee of NWO-WOTRO.
Prof. Lensink will take on the role of co-leading the newly established Cluster of Research Excellence in Inequalities, Poverty, and Deprivation with ACEIR’s Director, Prof. Murray Leibbrandt, from SALDRU at the University of Cape Town.