The Demand for Crop Insurance Bundled with Micro-Credit

23 Pages Posted: 18 Oct 2019

See all articles by Mame Mor Anta Syll

Mame Mor Anta Syll

University of Orleans, Laboratoire d'économie d'Orléans, Students; Université Gaston Berger de Saint-Louis, Students; Initiative Prospective Agricole et Rurale (IPAR)

Date Written: October 8, 2019

Abstract

Access to financial services is challenging for small farmers in developing countries. This paper studies the demand for micro-insurance when it is bundled with micro-credit in the context of rain-fed agriculture. It presents the conditions under which linking micro-insurance with micro-credit can be beneficial for small producers who cannot access agricultural credit due to lack of collateral. The results show that if crop insurance and agricultural loans are bundled, the demand for crop insurance increases with the profitability of the investment made through the agricultural credit, and it decreases with the level of collateral required during the application for credit.

Keywords: micro-insurance, agricultural micro-credit, bundling, uptake decision

JEL Classification: D81, G20, O16, Q14

Suggested Citation

Syll, Mame Mor Anta, The Demand for Crop Insurance Bundled with Micro-Credit (October 8, 2019). Available at SSRN: https://ssrn.com/abstract=3466397 or http://dx.doi.org/10.2139/ssrn.3466397

Mame Mor Anta Syll (Contact Author)

University of Orleans, Laboratoire d'économie d'Orléans, Students ( email )

Orléans cedex 2
France

Université Gaston Berger de Saint-Louis, Students ( email )

Senegal

Initiative Prospective Agricole et Rurale (IPAR) ( email )

Keur Jacques Faye, Immeuble Bilguiss, 67,
Rond-Point VDN - Ouest Foire
Dakar-Fann, BP 16788
Senegal
(221) 33.869.00.79 (Phone)
(221) 33868.05.38 (Fax)

HOME PAGE: http://https://www.ipar.sn/

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