I construct index-based weather insurance contracts with optimal hedging effectiveness for the insured or maximal profits for the insurer. In contrast to earlier work, I refrain from imposing functional form assumptions on the stochastic relationship between weather and yield and from...

This paper presents assessment results for the current state of the implementation of the Basel Core Principles for Effective Banking Supervision (BCP) in Spain. It found that significant changes have occurred in Spain since the last Financial Sector Assessment Program. The most serious has been...

This paper provides an update on the significant regulatory and supervisory development in the Spanish insurance sector since 2006. The Spanish authorities have taken steps to address a number of shortcomings identified in the 2006 Financial Sector Assessment Program. Most notably, cooperation...

Nigeria undertook a Financial Sector Assessment Program (FSAP), which included a review of the structure of Nigeria’s insurance market and the supervisory framework. The assessment was benchmarked against the Insurance Core Principles (ICPs) issued by the International Association of...

Most farmers in South Africa use standard insurance to protect their crops against natural disasterssuch as hail or strong winds. However, no South African insurance contracts exist to compensatefor too much or too little rain (although floods are covered), or which will pay out iftemperatures...

A market place designed to provide a variety of weather-sensitive institutions with products for dealing with their risks from weather-climate hazards has been developing in recent years. Shifts in demographics, growing population, and greater wealth across the U.S., coupled with de-regulation...

Previous studies have shown that weather derivatives are an effective means of hedging agricultural production risk. Yet, it is still unclear what role weather derivatives will play in agriculture as a risk management tool as compared with existing crop insurance programs which depend highly on...

The goal of the paper is to analyse the various issues attached to the valuation of weather derivatives. We focus our study on temperature-related contracts since they are the most widely traded at this point and try to address the following questions: (i) should the quantity underlying the...

Weather derivatives are designed to hedge the volumetric risk associated with unfavourable weather. They have the ability to hedge weather related volume or yield risk for the agricultural sector, although there are still many hurdles to their widespread implementation in Australian agriculture....

Both rising competition for water resources and increasing environmental concerns have placed the need for an enhanced water resources management on the policy agenda. However, a stricter regulation of irrigation water tends to result in declining farm income and arising risk exposure. With this...