Nudge to insure: Can informational nudges change enrollment decisions in pasture, rangeland, and forage rainfall index insurance?

2021 ◽  
Author(s):  
Kelly A. Davidson ◽  
Brittney K. Goodrich
Keyword(s):  
Index Insurance ◽  
Enrollment Decisions ◽  
Rainfall Index

scholarly journals Designing Rainfall Index Insurance for Rubber Plantation in Balikpapan

2021 ◽  
Vol 1863 (1) ◽  
pp. 012018
Author(s):  
Muhammad Azka ◽  
Fauziyyah ◽  
Primadina Hasanah ◽  
Syalam Ali Wira Dinata
Keyword(s):  
Index Insurance ◽  
Rubber Plantation ◽  
Rainfall Index

Evaluating effectiveness of rainfall index insurance

2018 ◽  
Vol 78 (5) ◽  
pp. 611-625 ◽  
Author(s):  
Rui Zhou ◽  
Johnny Siu-Hang Li ◽  
Jeffrey Pai
Keyword(s):  
Crop Yield ◽  
Variance Reduction ◽  
Index Insurance ◽  
Corn Yield ◽  
Basis Risk ◽  
Content Type ◽  
Optimal Insurance ◽  
Rainfall Index ◽  
Temperature And Precipitation ◽  
Insurance Portfolio

Purpose The purpose of this paper is to examine the reduction of crop yield uncertainty using rainfall index insurances. The insurance payouts are determined by a transparent rainfall index rather than actual crop yield of any producer, thereby circumventing problems of adverse selection and moral hazard. The authors consider insurances on rainfall indexes of various months and derive an optimal insurance portfolio that minimizes the income variance for a crop producer. Design/methodology/approach Various regression models are considered to relate crop yield to monthly mean temperature and monthly cumulative precipitation. A bootstrapping method is used to simulate weather indexes and corn yield in a future year with the correlation between precipitation and temperature incorporated. Based on the simulated scenarios, the optimal insurance portfolio that minimizes the income variance for a crop producer is obtained. In addition, the impact of correlation between temperature and precipitation, availability of temperature index insurance and geographical basis risk on the effectiveness of rainfall index insurance is examined. Findings The authors illustrate the approach with the corn yield in Illinois east crop reporting district and weather data of a city in the same district. The analysis shows that corn yield in this district is negatively influenced by excessive precipitation in May and drought in June–August. Rainfall index insurance portfolio can reduce the income variance by up to 51.84 percent. Failing to incorporate the correlation between temperature and precipitation decreases variance reduction by 11.6 percent. The presence of geographical basis risk decreases variance reduction by a striking 24.11 percent. Allowing for the purchase of both rainfall and temperature index insurances increases variance reduction by 13.67 percent. Originality/value By including precipitation shortfall into explanatory variables, the extended crop yield model explains more fluctuation in crop yield than existing models. The authors use a bootstrapping method instead of complex parametric models to simulate weather indexes and crop yield for a future year and assess the effectiveness of rainfall index insurance. The optimal insurance portfolio obtained provides insights on the practical development of rainfall insurance for corn producers, from the selection of triggering index to the demand of the insurance.

scholarly journals The Impact of Commercial Rainfall Index Insurance: Experimental Evidence from Ethiopia

2020 ◽  
Vol 102 (4) ◽  
pp. 1154-1176
Author(s):  
Shukri Ahmed ◽  
Craig McIntosh ◽  
Alexandros Sarris
Keyword(s):  
Experimental Evidence ◽  
Index Insurance ◽  
Rainfall Index ◽  
The Impact

Demand for temperature and rainfall index insurance in India

2019 ◽  
Vol 50 (3) ◽  
pp. 353-366 ◽  
Author(s):  
Ayako Matsuda ◽  
Takashi Kurosaki
Keyword(s):  
Index Insurance ◽  
Rainfall Index

Rainfall index insurance to help smallholder farmers manage drought risk

2010 ◽  
Vol 2 (3) ◽  
pp. 233-247 ◽  
Author(s):  
JACQUELINE DÍAZ NIETO ◽  
SIMON E. COOK ◽  
PETER LäDERACH ◽  
MYLES J. FISHER ◽  
PETER G. JONES
Keyword(s):  
Smallholder Farmers ◽  
Index Insurance ◽  
Drought Risk ◽  
Rainfall Index

scholarly journals Microinsurance: a case study of the Indian rainfall index insurance market

2010 ◽  
Author(s):  
Xavier Giné ◽  
Lev Menand ◽  
Robert Townsend ◽  
James Vickery
Keyword(s):  
Insurance Market ◽  
Index Insurance ◽  
Rainfall Index ◽  
Indian Rainfall
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