Delayed Premium Payment, Insurance Adoption, and Household Investment in Rural China

We conduct a randomized controlled trial to examine the impacts of delayed premium payment on insurance uptake and the subsequent investment decisions among small-holder farmers in rural China. Our results show uptake among those with the delayed payment option is three times as high as among those without the option. Using the random variation in uptake thus induced, we find a positive impact of insurance adoption on household investment in production, especially higher-risk activities