Advanced Analytics
Drought Index Crop Insurance Adoption
National insurers had actuarially sound products but stagnant renewal. The hypothesis: demand frictions were behavioral and social, not only basis risk.
Challenge
Despite rising climate risks, farmer participation in index-based insurance schemes remained critically low.
Solution
Behavioral econometrics linking non-cognitive skills, aspirations, and risk perceptions to adoption decisions.
Result
Tailored insurance products and policy frameworks for national climate adaptation strategies.
Overview
National insurers had actuarially sound products but stagnant renewal. The hypothesis: demand frictions were behavioral and social, not only basis risk.
Methodology
- Psychometric batteries matched to administrative enrollment; message experiments embedded in USSD renewal flows.
- Latent variable models for aspirations; survival analysis for drop-off timing.
Outcomes
- Revised renewal scripts and district-level peer-matching for extension demos.
- Regulator briefing on how to report basis risk alongside behavioral uptake metrics.
Partners
- National Insurance Commission
- Agricultural insurance consortia