Insurance against covariate shocks : the role of index-based insurance in social protection in low-income countries of Africa / Harold Alderman and Trina Haque
Introduction -- Index-based insurance in low income contexts : potential and limitations -- Recent global innovations -- Forays into insurance in Africa -- Future directions and conclusions
Summary
Uninsured risk had far-reaching consequences for rural growth as well as poverty reduction. A range of informal mechanisms to insure rural households against the impact of shocks, but they are a modest component of a risk layering strategy for well-off households and even less protective for low-income households. Formal insurance mechanisms have inherent market imperfections. State interventions to address these limitations have proven costly and generally are targeted poorly. Recent developments in microfinance as well as in insurance marketing have opened new possibilities for household ris
