Economic theory predicts that microinsurers could provide optimal insurance contracts by acting as a reinsurer to groups of individuals who have access to information about each other, such as extended families or community organisations. This study explores the potential of developing new insurance contracts that pay out to groups of farmers above a certain group-level co-payment. This study seeks to understand how well group excess of loss-style crop insurance performs relative to individual insurance (including weather index insurance). As a precursor to design and pilot test new crop insurance products, the project will set up laboratory experiments with farmers to better understand the potential of group microinsurance.
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