Smallholder Farmer Preferences for Index-Based Crop Insurance [data]

Extreme weather events pose a growing challenge to food security and nutrition in communities that rely on subsistence, rain-fed agriculture. In such settings, limited access to infrastructure, financial services, and institutional support constrain adaptive capacity, leaving householdsdisproportionately exposed to climate shocks that erode assets and perpetuate poverty. Index-based weather insurance (IBWI) has the potential to buffer climate risk, yet uptake remains low, partly due to limited alignment with user preferences. We conducted a discrete choice experiment, informed by a qualitative study, to investigate preferences for IBWI features in northwestern Burkina Faso. Four attributes were examined: premium (5–15% of expected harvest), payout (50–100%), rainfall risk (drought, flood, combined drought and flood), and distribution channel (government agencies, financial institutions, farmer-based non-governmental organisation [NGOs]). A D-efficient design generated 12 choice scenarios, administered to 200 participants in three blocks, with each participant responding to four scenarios. Preferences were analyzed using mixed logit and latent class models. Rainfall risk emerged as the most important attribute, with strong preferences for combined drought- and flood-coverage. Higher payouts were preferred, whereas premiums did not significantly influence preferences. Financial institutions were the most preferred distribution channel. The latent group analysis identified three groups with distinct preferences. These findings underscore the need to integrate stakeholder-derived preferences into IBWI design, showing how user-centred insurance products can better align with local adaptation priorities.