Delayed Premium Payment, Insurance Adoption, and Household Investment in Rural China
Last registered on February 27, 2017

Pre-Trial

Trial Information
General Information
Title
Delayed Premium Payment, Insurance Adoption, and Household Investment in Rural China
RCT ID
AEARCTR-0002009
Initial registration date
February 27, 2017
Last updated
February 27, 2017 6:52 PM EST
Location(s)
Region
Primary Investigator
Affiliation
International Food Policy Research Institute
Other Primary Investigator(s)
Additional Trial Information
Status
Completed
Start date
2010-12-01
End date
2013-06-25
Secondary IDs
International Labor Organization's Microinsurance Innovation Facility (Grant Reference Number: R4-93, May 2010)
Abstract
We conduct a randomized controlled trial to examine the impacts of delayed premium payment on insurance uptake and the subsequent investment decisions among smallholder farmers in rural China. Our results show uptake among those with the delayed payment option is three times as high as among those without the option. Using the random variation in uptake thus induced, we nd a positive impact of insurance adoption on household investment in production, especially higher-risk activities.
External Link(s)
Registration Citation
Citation
Liu, Yanyan. 2017. "Delayed Premium Payment, Insurance Adoption, and Household Investment in Rural China." AEA RCT Registry. February 27. https://www.socialscienceregistry.org/trials/2009/history/14439
Experimental Details
Interventions
Intervention(s)
Intervention Start Date
2011-06-10
Intervention End Date
2011-12-02
Primary Outcomes
Primary Outcomes (end points)
insurance uptake, household investment in pigs by breeds
Primary Outcomes (explanation)
Secondary Outcomes
Secondary Outcomes (end points)
Secondary Outcomes (explanation)
Experimental Design
Experimental Design
In the experiment, we randomly selected half the farmers in our study right before the purchasing window for the next insurance policy period and provided them with the option of purchasing an insurance contract but delaying payment of the premium until the end of the insured period. If no loss was suffered, the premium was to be paid with interest; but if a loss was incurred, the premium and interest payment would be deducted from the indemnity paid by the insurers.
Experimental Design Details
Randomization Method
Randomization done in office by a computer
Randomization Unit
We randomized at the natural village level.
Was the treatment clustered?
Yes
Experiment Characteristics
Sample size: planned number of clusters
The sample comprises 162 natural villages (clusters) .
Sample size: planned number of observations
Our sample includes 1,684 hog-raising households from 162 natural villages (clusters of households in a geographically proximate area) in 18 administrative villages in three towns in Zizhong County of Sichuan Province, China.
Sample size (or number of clusters) by treatment arms
We have three groups: the treatment group (TG), comprising 81 natural villages and 842 households; control group 1 (CG1, in which households received information), comprising 41 natural villages and 497 households; and control group 2 (CG2, in which households received nothing), comprising 40 natural villages and 343 households.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
IRB
INSTITUTIONAL REVIEW BOARDS (IRBs)
IRB Name
IRB Approval Date
IRB Approval Number
Post-Trial
Post Trial Information
Study Withdrawal
Intervention
Is the intervention completed?
No
Is data collection complete?
Data Publication
Data Publication
Is public data available?
No
Program Files
Program Files
Reports and Papers
Preliminary Reports
Relevant Papers