This study examines how basis ambiguity influences the demand for index insurance. Ambiguity is introduced into the … and the index individually. Basis ambiguity lowers the demand for index insurance and increases the threshold to hold the … index insurance. This is a possible explanation for the very low demand and participation in index insurance. Further, we …

unpredictable (and unobservable) fluctuations in demand for life insurance as well as changes in risk type (observable) over … individuals' lifetimes. The presence of demand type heterogeneity leads to the possibility that optimal GR contracts may have a … whose type turns out to be high risk but low demand renew more of their GR insurance than is efficient due to the attractive …

unpredictable (and unobservable) fluctuations in demand for life insurance as well as changes in risk type (observable) over … individuals' lifetimes. The presence of demand type heterogeneity leads to the possibility that optimal GR contracts may have a … whose type turns out to be high risk but low demand renew more of their GR insurance than is efficient due to the attractive …