This research includes 5 stages. In the 1st stage, a pilot and baseline survey are conducted to collect basic information of 41 VSLAs and 800 farmers. This information is used to assign 41 VSLAs into different treatment arms using stratified randomization technique. Then, VSLAs’ leaders are trained in the 2nd stage to be able to make lists of participants, collect premiums, and distribute insurance contracts.
My field experiment is carried out over two seasons (3rd stage, 4th stage, and 5th stage) to examine the persistent impacts of the treatments. In each season, insurance educators introduce crop insurance to farmers through VSLAs’ meetings at the beginning of the season. After that, farmers have 2 weeks to purchase the insurance. Farmers in pay-up-front group (control group) pay premiums within these two weeks. Farmers in delayed-payment groups pay premium (plus interest) at the end of the season or other delayed timings, respectively. Follow-up survey is conducted at the end of each season to obtain four outcomes: take-up decision, default decision, agricultural investments, farmers’ income and expenditure.