Barriers to household risk management : evidence from India

Why do many households remain exposed to large exogenous sources of non-systematic income risk? This paper uses a series of randomized field experiments in rural India to test the importance of price and non-price factors in the adoption of an innovative rainfall insurance product. The analysis finds that demand is significantly price-elastic, but that even if insurance were offered with payout ratios similar to US, widespread coverage would not be achieved. The paper identifies key non-price frictions that limit demand: liquidity constraints, particularly among poor households, lack of trust, and limited salience. The authors suggest potential improvements in contract design to mitigate these frictions.Financial Literacy,Debt Markets,Access to Finance,Emerging Markets,Labor Policies

Why Do People Adopt, or Reject, Smartphone Password Managers?

People use weak passwords for a variety of reasons, the most prescient of these being memory load and inconvenience. The motivation to choose weak passwords is even more compelling on Smartphones because entering complex passwords is particularly time consuming and arduous on small devices. Many of the memory- and inconvenience-related issues can be ameliorated by using a password manager app. Such an app can generate, remember and automatically supply passwords to websites and other apps on the phone. Given this potential, it is unfortunate that these applications have not enjoyed widespread adoption. We carried out a study to find out why this was so, to investigate factors that impeded or encouraged password manager adoption. We found that a number of factors mediated during all three phases of adoption: searching, deciding and trialling. The study’s findings will help us to market these tools more effectively in order to encourage future adoption of password managers

Millennials Acceptance of Insurance Telematics: An Integrative Empirical Study

Insurance telematics is a recent technology-enabled service innovation advanced by insurance companies and adopted by millions of drivers worldwide. This research study explores the insurance telematics technology acceptance and use among the new Millennials generation, which represents both a challenge and an opportunity for insurers. Drawing on the Technology Acceptance Model (TAM) and the Theory of Planned Behaviour (TPB), the study uses data from 138 Millennials in the USA to delve into their perceived attitudinal behavior and intention to use insurance telematics. The findings provide empirical confirmation of the integrative and predictive power of the proposed combined theoretical framework (TAM-TPB) to explain insurance telematics adoption and use. The results also suggest a sophistication-level shift in Millennials preferences from functionality evaluation to applicability value sought through the adoption and use. And the findings ascertain the role of perceived enjoyment, trust, and social media as critical factors influencing Millennials attitudinal behavior and intention to use insurance telematics. Considering these results, the authors further discuss implications for scholars and practitioners, and suggest future research directions

Personal vehicle sharing services in North America

Over the past three decades, carsharing has grown from a collection of local grassroots organizations into a worldwide industry. Traditional carsharing, though expanding, has a limited network of vehicles and locations. The next generation of shared-use vehicle services could overcome such expansion barriers as capital costs and land use by incorporating new concepts like personal vehicle sharing.Personal vehicle sharing provides short-term access to privately-owned vehicles. As of May 2012, there were 33 personal vehicle sharing operators worldwide, with 10 active or in pilot phase, three planned, and four defunct in North America. Due to operator non-disclosure, personal vehicle sharing member numbers are currently unknown. The authors investigated personal vehicle sharing in North America by conducting 34 expert interviews. This research explores the development of personal vehicle sharing including business models, market opportunities, and service barriers to assess its early viability as a sustainable transportation mode and to provide a foundation for future research on the topic. Personal vehicle sharing has the potential to impact the transportation sector by increasing the availability and interconnectivity among modes and providing greater alternatives to vehicle ownership in more geographic locations

Understanding smart contracts as a new option in transaction cost economics

Among different concepts associated with the term blockchain, smart contracts have been a prominent one, especially popularized by the Ethereum platform. In this study, we unpack this concept within the framework of Transaction Cost Economics (TCE). This institutional economics theory emphasizes the role of distinctive (private and public) contract law regimes in shaping firm boundaries. We propose that widespread adoption of the smart contract concept creates a new option in public contracting, which may give rise to a smart-contract-augmented contract law regime. We discuss tradeoffs involved in the attractiveness of the smart contract concept for firms and the resulting potential for change in firm boundaries. Based on our new conceptualization, we discuss potential roles the three branches of government – judicial, executive, and legislative – in enabling and using this new contract law regime. We conclude the paper by pointing out limitations of the TCE perspective and suggesting future research directions

Pilot evaluation of the Index Based Flood Insurance in Bihar, India: Lessons of experiences

The Government of Bihar (GOB) with the help of Government of India (GOI) introduced and implemented various crop insurance programs, to provide protection against losses caused by fluctuations in the output of a crop from one year to another or from one crop season to another. Traditional agricultural insurances are designed to make compensation to client farmers affected by various disasters and natural calamities based on individual yield losses or damage to crops and livestock (Ahmed, 2013; Swain and Patnaik, 2016). For developing countries like India, with large numbers of smallholder farmers, measuring such individual losses would incur enormous costs for insurance companies. The index-based insurance offers an alternative in which individual assessment is not necessary. Advances in satellite technology and data analysis were integrated to develop index insurance products, which were piloted in different countries throughout the world such as India, Ethiopia, Senegal, and United States. The index insurance products help minimize the high transaction costs and have the potential to expand the reach of insurance policies to rural areas that were previously considered uninsurable (Swain and Patnaik, 2016; Smith and Watts, 2019). The International Water Management Institute (IWMI) has developed an Index-Based Flood Insurance (IBFI) product integrating hi-tech modeling and satellite imagery (Amarnath and Sikka, 2018; Matheswaran et al. 2019). The product was pilot tested among 200 farmers in six villages of the Gaighat Block of Muzaffarpur District, Bihar during the Khariff season, 2017. This report presents the findings of the IBFI ex-post evaluation undertaken in the pilot areas in Muzaffarpur. The findings of this study provide lessons on how index-based insurance schemes can be made more inclusive, and inform any development of a scheme for future upscaling by IWMI. The findings are based on the qualitative assessment made in April 2018 and a household survey conducted in July 2018

Healthy People in a Healthy Economy: A Blueprint for Action in Massachusetts

Examines the recession's effects on health and the cost of chronic disease. Suggests proven strategies for schools, municipalities, state government, payers, employers, the food industry, physicians, philanthropies, and media to promote healthy behaviors

Blockchain for automotive: An insight towards the IPFS blockchain-based auto insurance sector

The advancing technology and industrial revolution have taken the automotive industry by storm in recent times. The auto sector’s constantly growing demand has paved the way for the automobile sector to embrace new technologies and disruptive innovations. The multi-trillion dollar, complex auto insurance sector is still stuck in the regulations of the past. Most of the customers still contact the insurance company by phone to buy new policies and process existing insurance claims. The customers still face the risk of fraudulent online brokers, as policies are mostly signed and processed on papers which often require human supervision, with a risk of error. The insurance sector faces a threat of failure due to losing and misconception of policies and information. We present a decentralized IPFS and blockchain-based framework for the auto insurance sector that regulates the activities in terms of insurance claims for automobiles and automates payments. This article also discusses how blockchain technology’s features can be useful for the decentralized autonomous vehicle’s ecosystem