Taking advantage of a natural experiment and a rich household-level panel dataset, this paper tests the impact of an agricultural insurance program on household level production, borrowing, and saving. The empirical strategy includes both difference-in-differences and triple differences estimations. I find that first, introducing insurance increases the production area of insured crops by around 15%; second, provision of insurance raises credit demand by 25% but has no impact on credit supply; third, while the policy does not affect either the rate or the level of household saving, farmers tend to hold more flexible-term savings after the insurance provision; fourth, the effects of insurance policy on production and savings persist in the long-run, while that on borrowing diminishes and becomes less significant over time; fifth, the impact of insurance is bigger on smaller farmers and on households with lower migration remittances.
