Index Insurance Quality and Basis Risk: Evidence from Northern Kenya

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Food and Earth Systems: Priorities for Climate Change Adaptation and Mitigation for Agriculture and Food Systems (2019, background): ““Basis risk”—farmers experiencing losses when a payout is not triggered or receiving a payout when losses are not experienced—is a particular challenge to adoption of index-based insurance [60,61].”
After the Drought: The Impact of Microinsurance on Consumption Smoothing and Asset Protection (2013, unknown): “According to the data used for this paper, 3 More recent evidence presented by Jensen, Barrett, and Mude (2016) suggests that basis risk may be more important than originally thought; the authors estimate that IBLI policy holders are left with an average of 69% of their original risk due to high…”