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Delayed Premium Payment, Insurance Adoption, and Household Investment in Rural China

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  • Yanyan Liu
  • Kevin Chen
  • Ruth V. Hill

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 10% higher than and three times as high as among those without the option. We also find a positive impact of delayed premium payment and insurance adoption on household investment in production, especially higher risk activities.

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  • Yanyan Liu & Kevin Chen & Ruth V. Hill, 2020. "Delayed Premium Payment, Insurance Adoption, and Household Investment in Rural China," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(4), pages 1177-1197, August.
    • Handle: RePEc:wly:ajagec:v:102:y:2020:i:4:p:1177-1197
    DOI: 10.1002/ajae.12038
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    Cited by:

    1. Lichtenberg, Erik & Iglesias, Eva, 2022. "Index insurance and basis risk: A reconsideration," Journal of Development Economics, Elsevier, vol. 158(C).
    2. Qingyin Cai & Yulian Ding & Calum Tuvey & Yuehua Zhang, 2021. "The influence of past experience on farmers’ preferences for hog insurance products: a natural experiment and choice experiment in China," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 46(3), pages 399-421, July.
    3. Aurélien Baillon & Owen O'Donnell & Stella Quimbo & Kim van Wilgenburg, 2022. "Do time preferences explain low health insurance take‐up?," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 89(4), pages 951-983, December.
    4. Mao, Hui & Quan, Yurong & Fu, Yong & Chen, Shaojian, 2022. "Risk preferences, productive investment and straw return technology adoption by farmers in China," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322087, Agricultural and Applied Economics Association.

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