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Evidence Brief 2: Meso-Insurance and Aggregation

This paper explores meso-insurance, a form of insurance designed for firms or financial intermediaries, differentiating it from microinsurance (for individuals) and macro-insurance (for governments). It discusses two primary types of meso-insurance: products tailored for firms exposed to weather-related risks, such as financial intermediaries, and those that aggregate individual-level demand, like agricultural insurance for farmer groups or cooperatives. The paper reviews evidence on the effectiveness of meso-insurance, particularly in middle- and low-income countries, where it has been shown to help manage weather-related risks and maintain credit supply after extreme events. Additionally, it examines the aggregation of insurance demand, noting that farmers often prefer group insurance due to shared risk and peer support. While meso-insurance presents potential benefits, more research is needed to demonstrate its value for low-income financial intermediaries and its impact on vulnerable populations.

Sönke Kreft

Sönke Kreft

Sinja Buri

Sinja Buri

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