scholarly journals Incorporating Satellite Data Into Weather Index Insurance

2016 ◽  
Vol 97 (10) ◽  
pp. ES203-ES206 ◽  
Author(s):  
Emily Black ◽  
Helen Greatrex ◽  
Matthew Young ◽  
Ross Maidment
Keyword(s):  
Satellite Data ◽  
Index Insurance ◽  
Weather Index ◽  
Weather Index Insurance

Exploiting the Convergence of Evidence in Satellite Data for Advanced Weather Index Insurance Design

2018 ◽  
Vol 11 (1) ◽  
pp. 65-93 ◽  
Author(s):  
Markus Enenkel ◽  
Daniel Osgood ◽  
Martha Anderson ◽  
Bristol Powell ◽  
Jessica McCarty ◽  
...  
Keyword(s):  
Soil Moisture ◽  
Satellite Data ◽  
Smallholder Farmers ◽  
Agricultural Drought ◽  
Added Value ◽  
Stress Index ◽  
Index Insurance ◽  
Weather Index ◽  
Vegetation Greenness ◽  
Weather Index Insurance

Abstract The goal of drought-related weather index insurance (WII) is to protect smallholder farmers against the risk of weather shocks and to increase their agricultural productivity. Estimates of precipitation and vegetation greenness are the two dominant satellite datasets. However, ignoring additional moisture- and energy-related processes that influence the response of vegetation to rainfall leads to an incomplete representation of the hydrologic cycle. This study evaluates the added value of considering multiple independent satellite-based variables to design, calibrate, and validate weather insurance indices on the African continent. The satellite data include two rainfall datasets, soil moisture, the evaporative stress index (ESI), and vegetation greenness. We limit artificial advantages by resampling all datasets to the same spatial (0.25°) and temporal (monthly) resolution, although datasets with a higher spatial resolution might have an added value, if considered as the single source of information for localized applications. A higher correlation coefficient between the moisture-focused variables and the normalized difference vegetation index (NDVI), an indicator for vegetation vigor, provides evidence for the datasets’ capability to capture agricultural drought conditions on the ground. The Climate Hazards Group Infrared Precipitation with Stations (CHIRPS) rainfall dataset, soil moisture, and ESI show higher correlations with the (lagged) NDVI in large parts of Africa, for different land covers and various climate zones, than the African Rainfall Climatology, version 2 (ARC2), rainfall dataset, which is often used in WII. A comparison to drought years as reported by farmers in Ethiopia, Senegal, and Zambia indicates a high “hit rate” of all satellite-derived anomalies regarding the detection of severe droughts but limitations regarding moderate drought events.

Do high-resolution satellite indices at field level reduce basis risk of satellite-based weather index insurance?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wienand Kölle ◽  
Matthias Buchholz ◽  
Oliver Musshoff
Keyword(s):  
Spatial Resolution ◽  
Satellite Data ◽  
Index Insurance ◽  
Weather Index ◽  
Basis Risk ◽  
Content Type ◽  
Farm Level ◽  
Insurance Contracts ◽  
Weather Index Insurance ◽  
Field Level

PurposeSatellite-based weather index insurance has recently been considered in order to reduce the high basis risk of station-based weather index insurance. However, the use of satellite data with a relatively low spatial resolution has not yet made it possible to determine the satellite indices free of disturbing landscape elements such as mountains, forests and lakes.Design/methodology/approachIn this context, the Normalized Difference Vegetation Index (NDVI) was used based on both Moderate Resolution Imaging Spectroradiometer (MODIS) (250 × 250 m) and high-resolution Landsat 5/8 (30 × 30 m) images to investigate the effect of a higher spatial resolution of satellite-based weather index contracts for hedging winter wheat yields. For three farms in north-east Germany, insurance contracts both at field and farm level were designed.FindingsThe results indicate that with an increasing spatial resolution of satellite data, the basis risk of satellite-based weather index insurance contracts can be reduced. However, the results also show that the design of NDVI-based insurance contracts at farm level also reduces the basis risk compared to field level. The study shows that higher-resolution satellite data are advantageous, whereas satellite indices at field level do not reduce the basis risk.Originality/valueTo the best of the author’s knowledge, the effect of increasing spatial resolution of satellite images for satellite-based weather index insurance is investigated for the first time at the field level compared to the farm level.

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 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.

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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