index insurance by studying the fundamental causes for differences in weather risk between distributed locations. Design …/methodology/approach – The paper systematically compares insurance payouts at nearby locations based on differences in geographical … location. Originality/value – Spatial basis risk is a fundamental problem of index insurance and yet is still largely …

Index insurance and probabilistic seasonal forecasts are becoming available in developing countries to help farmers … uncertainty, forecasts, and insurance. While it is possible for forecasts to undermine insurance, we find that when contracts are … appropriately designed, there are important synergies between forecasts, insurance, and effective input use. Used together, these …

to that for indemnity insurance.  In particular, optimal demand is zero for infinitely risk averse individuals, and is …

Index insurance products circumvent many of the transaction costs and asymmetric information problems that obstruct … provision of low value conventional insurance policies in developing countries. Recent years have seen tremendous growth in … index insurance pilots in developing countries, but there has been little progress in our understanding of the quality of …

receive incomplete insurance from informal risk-sharing networks. We study the demand for, and effects of, offering formal … index-based rainfall insurance through a randomized experiment in an environment where the informal risk sharing network can … aggregate risk shows that informal networks lower the demand for formal insurance only if the network indemnifies against …

innovative rainfall insurance product. Demand is significantly price sensitive, but widespread take-up would not be achieved even … if the product offered a payout ratio comparable to U.S. insurance contracts. We present evidence suggesting that lack of …

using exchange traded weather derivatives to hedge agricultural production and insurance risk. …