scholarly journals Drought‐tolerant rice, weather index insurance, and comprehensive risk management for smallholders: evidence from a multi‐year field experiment in India

2020 ◽  
Vol 64 (2) ◽  
pp. 421-454 ◽  
Author(s):  
Patrick S. Ward ◽  
Simrin Makhija ◽  
David J. Spielman
Keyword(s):  
Risk Management ◽  
Field Experiment ◽  
Index Insurance ◽  
Weather Index ◽  
Drought Tolerant ◽  
Weather Index Insurance

scholarly journals Farmers’ Demand for Informal Risk Management Strategy and Weather Index Insurance: Evidence from China

2021 ◽  
Author(s):  
Yingmei Tang ◽  
Huifang Cai ◽  
Rongmao Liu
Keyword(s):  
Risk Management ◽  
Field Experiments ◽  
Management Strategies ◽  
Insurance Companies ◽  
Index Insurance ◽  
Insurance Demand ◽  
Weather Index ◽  
Weather Index Insurance ◽  
Risk Management Strategies ◽  
The Government

AbstractIn the absence of formal risk management strategies, agricultural production in China is highly vulnerable to climate change. In this study, field experiments were conducted with 344 households in Heilongjiang (Northeast China) and Jiangsu (East China) Provinces. Probit and logistic models and independent sample T-test were used to explore farmers’ demand for weather index insurance, in contrast to informal risk management strategies, and the main factors that affect demand. The results show that the farmers prefer weather index insurance to informal risk management strategies, and farmers’ characteristics have significant impacts on their adoption of risk management strategies. The variables non-agricultural labor ratio, farmers’ risk perception, education, and agricultural insurance purchase experience significantly affect farmers’ weather index insurance demand. The regression results show that the farmers’ weather index insurance demand and the influencing factors in the two provinces are different. Farmers in Heilongjiang Province have a higher participation rate than those in Jiangsu Province. The government should conduct more weather index insurance pilot programs to help farmers understand the mechanism, and insurance companies should provide more types of weather index insurance to meet farmers’ diversified needs.

The impact of weather index insurance on agricultural technology adoption evidence from field economic experiment in China

2019 ◽  
Vol 11 (4) ◽  
pp. 622-641
Author(s):  
Yingmei Tang ◽  
Yue Yang ◽  
Jihong Ge ◽  
Jian Chen
Keyword(s):  
Technology Adoption ◽  
Field Experiment ◽  
Rural China ◽  
Rural Households ◽  
Agricultural Technology ◽  
Index Insurance ◽  
Weather Index ◽  
Content Type ◽  
Weather Index Insurance ◽  
The Impact

Purpose The purpose of this paper is to empirically investigate the impact of weather index insurance on agricultural technology adoption in rural China. Design/methodology/approach A field experiment was conducted with 344 rural households/farmers in Heilongjiang and Jiangsu Provinces, China. DID model was used to evaluate farmers’ technology adoption with and without index insurance. Findings The results show that weather index insurance has a significant effect on the technology adoption of rural households; there is a regional difference in this effect between Heilongjiang and Jiangsu. Weather index insurance promotes technology adoption of rural households in Heilongjiang, while has limited impact on those in Jiangsu. Weather, planting scale and risk preference are also important factors influencing the technology adoption of rural households. Research limitations/implications This research is subject to some limitations. First, the experimental parameters are designed according to the actual situation to simulate reality, but the willingness in the experiment does not mean it will be put into action in reality. Second, due to the diversity of China’s climate, geography and economic environment, rural households are heterogeneous in rural China. Whether the conclusion can be generalized beyond the study area is naturally questionable. A study with more diverse samples is needed to gain a fuller understanding of index insurance’s effects on farmers in China. Originality/value This research provides a rigorous empirical analysis on the impact of weather index insurance on farmers’ agricultural technology adoption through a carefully designed field experiment.

Bounded rationality and the adoption of weather index insurance

2018 ◽  
Vol 78 (1) ◽  
pp. 116-134 ◽  
Author(s):  
Oliver Mußhoff ◽  
Norbert Hirschauer ◽  
Sven Grüner ◽  
Stefan Pielsticker
Keyword(s):  
Risk Management ◽  
Bounded Rationality ◽  
Controlled Trial ◽  
Observational Research ◽  
Simulation Game ◽  
Index Insurance ◽  
Weather Index ◽  
Content Type ◽  
Weather Index Insurance ◽  
Willingness To Adopt

Purpose The purpose of this paper is to check which role-bounded rationality might play as an explanation for farmers’ missing willingness to adopt weather index insurance (WII). WII is an innovative risk management instrument that causes low administration and regulation costs. Moreover, index insurance is plagued neither by moral hazard nor by adverse selection. Nonetheless, WII has been little used to date in agriculture. Design/methodology/approach An extra-laboratory experiment in the form of a multi-period, single-person business simulation game is conducted with farmers as experimental subjects to investigate the reasons for the low willingness to adopt WII. Findings First, the demand for WII decreases as the premium loading increases. Second, a transparent communication of the loading reduces demand, indicating that farmers refrain from transactions if they feel that the other party earns (too) much money. Third, communicating to farmers that the index insurance has been subsidized raises demand even though insurance costs in terms of loading are kept constant. This can be taken as an indication that farmers interpret subsidies as a signal for profitable action. Originality/value Using an experimental approach and going beyond observational research, this study investigates the prominent question of farmers’ risk management and innovation adoption behavior, and, in particular, the behavioral effect of subsidies. Using a randomized controlled trial, the real behavior of real subjects with real incentives is studied under controlled experimental conditions. Compared to prior studies, the external validity of the experiment is improved by recruiting farmers instead of a convenience group of students.

scholarly journals Contrasting Influences of Seasonal and Intra-Seasonal Hydroclimatic Variabilities on the Irrigated Rice Paddies of Northern Peninsular Malaysia for Weather Index Insurance Design

2021 ◽  
Vol 13 (9) ◽  
pp. 5207
Author(s):  
Zed Zulkafli ◽  
Farrah Melissa Muharam ◽  
Nurfarhana Raffar ◽  
Amirparsa Jajarmizadeh ◽  
Mukhtar Jibril Abdi ◽  
...  
Keyword(s):  
Pearson Correlation ◽  
Extreme Rainfall ◽  
Peninsular Malaysia ◽  
Coefficient Of Determination ◽  
Index Insurance ◽  
Weather Index ◽  
Basis Risk ◽  
Insurance Contracts ◽  
Weather Index Insurance ◽  
Streamflow Statistics

Good index selection is key to minimising basis risk in weather index insurance design. However, interannual, seasonal, and intra-seasonal hydroclimatic variabilities pose challenges in identifying robust proxies for crop losses. In this study, we systematically investigated 574 hydroclimatic indices for their relationships with yield in Malaysia’s irrigated double planting system, using the Muda rice granary as a case study. The responses of seasonal rice yields to seasonal and monthly averages and to extreme rainfall, temperature, and streamflow statistics from 16 years’ observations were examined by using correlation analysis and linear regression. We found that the minimum temperature during the crop flowering to the maturity phase governed yield in the drier off-season (season 1, March to July, Pearson correlation, r = +0.87; coefficient of determination, R2 = 74%). In contrast, the average streamflow during the crop maturity phase regulated yield in the main planting season (season 2, September to January, r = +0.82, R2 = 67%). During the respective periods, these indices were at their lowest in the seasons. Based on these findings, we recommend temperature- and water-supply-based indices as the foundations for developing insurance contracts for the rice system in northern Peninsular Malaysia.

scholarly journals POSSIBILITY OF WEATHER-INDEX INSURANCE FOR CLIMATE CHANGE ADAPTATION IN NORTHEAST THAILAND

2017 ◽  
Vol 73 (5) ◽  
pp. I_377-I_383 ◽  
Author(s):  
Koshi YOSHIDA ◽  
Koki HOMMA ◽  
Masayasu MAKI ◽  
Keigo NODA ◽  
Hiroaki SHIRAKAWA ◽  
...  
Keyword(s):  
Climate Change ◽  
Climate Change Adaptation ◽  
Index Insurance ◽  
Northeast Thailand ◽  
Weather Index ◽  
Weather Index Insurance

Quantifying spatial basis risk for weather index insurance

2012 ◽  
Vol 14 (1) ◽  
pp. 20-34 ◽  
Author(s):  
Michael T. Norton ◽  
Calum Turvey ◽  
Daniel Osgood
Keyword(s):  
Index Insurance ◽  
Weather Index ◽  
Basis Risk ◽  
Weather Index Insurance

Mapping the customer centric weather index insurance service design using quality function deployment

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pankaj Singh ◽  
Gaurav Agrawal
Keyword(s):  
Quality Function Deployment ◽  
Service Design ◽  
Index Insurance ◽  
Importance Rating ◽  
Customer Requirements ◽  
Weather Index ◽  
Quality Function ◽  
Content Type ◽  
Weather Index Insurance ◽  
Design Requirements

PurposeThe present paper aims to propose a framework on weather index insurance (WII) service design by using quality function deployment (QFD).Design/methodology/approachThis study utilizes QFD technique to propose a customer oriented framework on WII service design. In initial phase, customer and design requirements were gathered to derive the relationship between customers' and managers' voice for construct the house of quality (HOQ). Later on, prioritized customer and design requirements as QFD outcome were utilized to develop the action plan matrix in order to suggest the future action plans.FindingsThis study proposed a customer centric framework on WII service design to address the customer requirements. Findings show that adequate claim payments, hassle free prompt claim payment and transparency in losses computation are prioritized customer requirements with highest importance rating, whereas, accurate claim estimation, claim management system and advancement of technology are prioritized service design necessities with highest importance rating.Research limitations/implicationsThe proposed WII service design can enhance the quality of WII service by attain the higher standards of WII service in order to completely satisfy the customers.Practical implicationsThe proposed WII service design can provide a solution to the problems faced by WII industry by improve the customer's service experience and satisfaction.Originality/valueBased on best of author's knowledge, this paper first proposed a framework on WII service design by integrating customer and design requirements by using QFD.

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