This research considers the following question: how can generic weather index products be disigned and combined with network-based savings, gifts and loans to insure some of the basis risk inherent in these products? The research will focus on developing simple, flexible and inclusive index insurance products, and learning how to link them with savings or credit to reduce the impact of basis risk inherent in any index product. This research will thus also provide some understanding on how linking insurance and credit can strengthen credit markets in rural areas. The work will build on multiple years of panel data collected in Bangladesh and Ethiopia that has characterized the risks of rural households, their coping strategies and the impact of risk on welfare and investment.
