What is the differential demand for credit and with and without requirement to insure? Does it matter to whom the indemnity goes, borrower or lender? The advantage of sending to borrowers is the fact this is the most concrete way of providing risk protection to the person making the investment decisions. However, an advantage can be found sending through to the lender because this can be a better way to crowd in credit supply. How is demand for credit affected by the requirement to cover different fractions of the loan with insurance?

This presentation is based on AMA Innovation Lab projects for the 2013 BASIS/I4 Technical Committee Meeting. This meeting gathered researchers affiliated with the Index Insurance Innovation Initiative (I4) at UC Davis.

This presentation took place in University of California Davis, United States.