Uptake and Impact of Interlinked Index-based Insurance with Credit and Agricultural Inputs: Experimental Evidence from Ethiopia
Last registered on October 29, 2018

Pre-Trial

Trial Information
General Information
Title
Uptake and Impact of Interlinked Index-based Insurance with Credit and Agricultural Inputs: Experimental Evidence from Ethiopia
RCT ID
AEARCTR-0003504
Initial registration date
October 29, 2018
Last updated
October 29, 2018 5:12 PM EDT
Location(s)
Region
Primary Investigator
Affiliation
University of Greenwich
Other Primary Investigator(s)
PI Affiliation
Haramaya University
PI Affiliation
Wageningen University
Additional Trial Information
Status
Completed
Start date
2017-05-01
End date
2018-09-30
Secondary IDs
Abstract
This paper examines the results of randomized experiments in Ethiopia that assess the relevance of bundling index-based insurance (IBI) with credit and inputs. We compare four IBI options and their impact on adoption of modern technologies, consumption and productivity: (1) standard IBI; (2) newly-developed IBI, i.e. promoted via farmer groups and featuring a delayed premium option; (3) new IBI bundled with credit; and (4) new IBI bundled with credit and inputs. We find that only when farmers adopt a package comprised of insurance, credit and inputs, do they significantly increase their investment in modern agricultural technologies and, consequently, productivity grows.
External Link(s)
Registration Citation
Citation
Belissa, Temesgen, Robert Lensink and Ana Marr. 2018. "Uptake and Impact of Interlinked Index-based Insurance with Credit and Agricultural Inputs: Experimental Evidence from Ethiopia." AEA RCT Registry. October 29. https://www.socialscienceregistry.org/trials/3504/history/36406
Experimental Details
Interventions
Intervention(s)
We conducted our experiment with a local insurance company, Oromia Insurance Company (OIC), in the Rift Valley zone of Ethiopia. In the Rift Valley zone we randomly selected two kebeles , Desta Abjata and Qamo Garbi. Then, from the two kebeles, we randomly selected 47 farmer groups, called Garees in Ethiopia. To avoid ethical issues and to mitigate spillover effects, we used a cluster randomization to randomly assign the 47 garees into four groups: T1, T2, T3 and T4. All household heads from the 47 garees (in total 1661) are part of our experiment; all of them are farmers. Nobody is member of more than one garee.
Intervention Start Date
2017-07-10
Intervention End Date
2018-08-31
Primary Outcomes
Primary Outcomes (end points)
Investment in modern agricultural technologies, e.g. better seeds, fertiliser. Agricultural production.
Primary Outcomes (explanation)
Secondary Outcomes
Secondary Outcomes (end points)
Consumption
Secondary Outcomes (explanation)
Experimental Design
Experimental Design
Randomised Control Trial.
Experimental Design Details
Randomization Method
We randomly determined four groups, T1, T2, T3 and T4. T1 is the “control” group in the sense that this group did not get any specific treatment (or encouragement, or training). However, we were not allowed to impede T1 farmers from buying the standard index-based insurance from Oromia Insurance Company (OIC). In other words, T1 refers to the group who has access to the standard index-based insurance of OIC but nothing else.
T2 group: We offer farmers a newly-designed index-based insurance product, whereby the product is promoted/delivered via trusting farmer groups and the premium payment is delayed after harvest.
T3 group: We offer farmers the above-mentioned newly-developed IBI plus credit.
T4 group: We offer farmers the above-mentioned newly-developed IBI plus credit and inputs.
Randomization Unit
Individual
Was the treatment clustered?
Yes
Experiment Characteristics
Sample size: planned number of clusters
47 clusters
Sample size: planned number of observations
1661 farmers
Sample size (or number of clusters) by treatment arms
T1 group=420 farmers; T2 group=420 farmers; T3 group=401 farmers; T4 group=420 farmers. Total=1661 farmers.
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