Replication Data for: Barriers to Household Risk Management: Evidence from India

Why do many households remain exposed to large exogenous sources of nonsystematic income risk? We use a series of randomized field experiments in rural India to test the importance of price and nonprice factors in the adoption of an innovative rainfall insurance product. Demand is significantly price sensitive, but widespread take-up would not be achieved even if the product offered a payout ratio comparable to US insurance contracts. We present evidence suggesting that lack of trust, liquidity constraints, and limited salience are significant nonprice frictions that constrain demand. We suggest possible contract design improvements to mitigate these frictions.为何诸多家庭仍持续面临大规模外生非系统性收入风险？我们通过印度农村地区的一系列随机实地实验，检验价格与非价格因素在创新性降雨保险产品采纳过程中的重要性。研究结果显示，保险需求对价格显著敏感，但即便该产品的赔付率可与美国保险合同比肩，仍无法实现广泛的投保普及。我们的实证证据表明，信任缺失、流动性约束与凸显性不足，是制约保险需求的关键非价格摩擦因素。最后，我们提出了可缓解上述摩擦的保险合同设计优化方案。