Corpus ID: 34555630

The demand for insurance under limited trust: Evidence from a field experiment in Kenya

@inproceedings{Dercon2019TheDF,
  title={The demand for insurance under limited trust: Evidence from a field experiment in Kenya},
  author={S. Dercon and J. Gunning and A. Zeitlin},
  year={2019}
}
In spite of strong theoretical reasons to believe in the welfare-enhancing value of microinsurance products, demand for such products to date has been disappointingly low across a range of developing countries. In this paper we investigate the role of trust in the demand for indemnity insurance. First, we develop a theoretical model of insurance demand under limited trust to derive predictions for the way trust, risk aversion, and insurance premiums interact. Second, we test these predictions… Expand
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