Weather Index Insurance for Agriculture

This paper is a distillation of the findings of the work undertaken by the World Bank. It is deliberately not a collation of case studies, but rather a practical overview of the subject. The purpose of this paper is to introduce task managers and development professionals, who are not insurance sector specialists, to weather index insurance. Ultimately, the paper seeks to take the reader through the main decision points that would lead to a decision to embark upon a weather index insurance pilot and then assists them to understand the technical procedures and requirements that are involved with it. In addition, the paper seeks to advise the reader of the practical challenges and implications that are involved with a pilot of this nature and what they might expect to encounter during the initial stages of implementation. The very nature of an index based product creates the chance that an insured party may not be paid when they suffer loss and/or that they may receive a payment when they have suffered no loss. This paper also does not seek to delve deeply into the technical details and science that lie behind the 'black box' that is at the heart of the index.

Bibliographic Details

Main Author:	World Bank
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2011-11
Subjects:	ACCOUNTING, ADVERSE SELECTION, AFLATOXIN, AGRICULTURAL COMMODITIES, AGRICULTURAL INSURANCE, AGRICULTURAL INSURANCE SCHEME, AGRICULTURAL PRODUCTION, APPLICATIONS, BANKS, BASIS RISK, BORROWING, BROKERS, CATASTROPHE COVERAGE, CATASTROPHIC EVENT, CATASTROPHIC RISKS, CHANGES IN DEMAND, CLIMATE, COMMERCIAL INSURANCE, COMPENSATION, COST OF INSURANCE, COVERAGE, CROP DIVERSIFICATION, CROP INSURANCE, CROP INSURANCE PRODUCT, CROP INSURANCE PROGRAM, CYCLONES, DAMAGES, DISASTER RELIEF, DISASTERS, DROUGHT, EARLY WARNING, EARTHQUAKE, EARTHQUAKES, EMPLOYMENT, ENERGY INFRASTRUCTURE, ENSO, EXTREME EVENTS, EXTREME RAINFALL, EXTREME RAINFALL EVENTS, EXTREME WEATHER, EXTREME WEATHER EVENTS, FAMINE, FARMER, FEASIBILITY, FINANCIAL ASSISTANCE, FINANCIAL CAPACITY, FINANCIAL CONSEQUENCES, FINANCIAL INSTITUTIONS, FINANCIAL INSTRUMENTS, FINANCIAL LOSSES, FINANCIAL RISK, FINANCIAL SECTOR, FINANCIAL SERVICES, FINANCIAL SUPPORT, FIRE, FLOOD, FLOODING, FLOODS, FOREIGN AFFAIRS, HAIL STORMS, HEALTH RISKS, HEAVY RAIN, HURRICANE, HURRICANE CATASTROPHE, INCOME, INDEMNITY, INDEMNITY INSURANCE, INFORMATION SYSTEM, INNOVATIONS, INSURABLE INTEREST, INSURANCE, INSURANCE COMPANY, INSURANCE CONTRACT, INSURANCE MARKETS, INSURANCE PAYOUT, INSURANCE PILOT, INSURANCE POLICY, INSURANCE PREMIUM, INSURANCE PRODUCT, INSURANCE SECTOR, INSURANCE SYSTEM, INSURANCES, INSURER, INTEGRITY, INTERNATIONAL REINSURANCE, LABOR DISPUTES, LABORERS, LIFE INSURANCE, LIVESTOCK INSURANCE, LOWER PRICES, MARKET FAILURE, MARKET RISK, METEOROLOGICAL OFFICE, METEOROLOGICAL ORGANIZATION, MITIGATION, MORAL HAZARD, MULTIPLE PERIL CROP INSURANCE, NATURAL DISASTER, NONGOVERNMENTAL ORGANIZATION, OUTBREAK, OUTPUTS, POLICYHOLDERS, POLITICAL ECONOMY, POOR FARMERS, PORTFOLIO, PREMIUMS, PRICE RISK, PRODUCTIVITY, PROGRAMS, RATES, RECIPROCITY, REINSURANCE, REINSURANCE AGREEMENT, REINSURANCE COMPANIES, REINSURERS, RELIEF, RESEARCH AND DEVELOPMENT FUNDING, RESERVES, RISK ASSESSMENT, RISK EXPOSURES, RISK INSURANCE, RISK MANAGEMENT, RISK MANAGERS, RISK MITIGATION, RISK SHARING, RISK TRANSFER, SAFETY, SAFETY NET, SAVINGS, SEA SURFACE TEMPERATURES, SUPPLIERS, SURFACE TEMPERATURES, SUSTAINABILITY, TORNADO, TYPHOON, UNDERWRITING, VICTIMS, WEATHER EVENT, WEATHER INSURANCE, WIND SPEED,
Online Access:	http://documents.worldbank.org/curated/en/590721468155130451/Weather-index-insurance-for-agriculture-guidance-for-development-practitioners https://hdl.handle.net/10986/26889
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