Excerpt
Excerpt
Dynamics of Demand for Index Insurance: Evidence from a Long-Run Field Experiment. Shawn Cole, May 2014, Paper, "In the past ten years, many practitioners and academics have embraced micro-insurance. Economists view risk diversification as one of the few readily available “free lunches,” and dozens of products were launched in the hopes of developing a financial service that was both welfare enhancing and economically sustainable. A successful market-based approach, however, requires consumers to make good decisions about whether to purchase products. Practically speaking, because marketing policies is expensive, sustainability may depend on high purchase and repurchase rates."