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Adoption and impact of credit-linked crop index insurance: a case study in Mali

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  • Duchoslav, Jan
  • van Asseldonk, Marcel

Abstract

Linking insurance with credit is a promising approach towards overcoming the main difficulties of scaling up crop insurance in Africa. The current research revealed that credit-linked crop insurance adopters in Mali were on average larger households than non-adopters, were living more often from subsistence agriculture, were less patient and less likely to produce maize, while operating on smaller farms. However, propensity score matching revealed that changes in terms of production decisions or wellbeing were limited compared to credit-users. To achieve scaling, linking crop insurance with credit should not only be beneficial for banks to limit their exposure (on a mandatory basis), but should become beneficial as well for smallholders (in terms of better access to credit, lower interest rates or less required collateral).

Suggested Citation

  • Duchoslav, Jan & van Asseldonk, Marcel, 2018. "Adoption and impact of credit-linked crop index insurance: a case study in Mali," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 120(2), August.
    • Handle: RePEc:ags:stagec:276090
    DOI: 10.22004/ag.econ.276090
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    References listed on IDEAS

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    1. Michael R. CARTER & Alain de JANVRY & Elisabeth SADOULET & Alexandros SARRIS, 2014. "Index-based weather insurance for developing countries: A review of evidence and a set of propositions for up-scaling," Working Papers P111, FERDI.
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    3. Thomas Url & Franz Sinabell & Karin Heinschink, 2018. "Addressing basis risk in agricultural margin insurances," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 78(2), pages 233-245, February.
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