Crop insurance is an alternative risk management technique available to farmers for stabilizing their revenue risk and schemes based on area yield have been in operation for quite some time. Here rainfall based insurance indices and options are suggested as a replacement for the expensive area...

One of the key factors affecting the crop output is the rainfall volume. For this reason, insurance plans based on the rainfall deviation of the mean have been advanced. This paper provides prospects of rainfall-indexed insurance in Romania considering the tradeoff between moral hazard and basis...