Insurance with in-kind benefits improves living conditions for vulnerable households.
The article discusses how losing income can lead to health issues due to reduced consumption of essential goods. To prevent this, people can buy insurance to ensure they can still afford these goods if their income drops. The researchers created a model to show how this insurance with in-kind benefits can work, focusing on fuel poverty. They found that even if the insurance is provided by a monopoly, it significantly improves the living conditions of the riskiest households by ensuring they have enough energy.