, the hedging effectiveness of weather index-based insurance with regard to aggregation biases in the underlying risk … reduction potential for the application of weather index-based insurance in the NCP is discussed in chapter III. Before the … specific objectives of both chapters are listed, weather risk in agriculture is reconsidered and the scope of risk ... …

The supply of affordable crop insurance is hampered by the existence of systemic weather risk which results in large … risk premiums. In this article, we assess the systemic nature of weather risk for 17 agricultural production regions in … the weather index and the strike level of the insurance. Our findings are relevant for insurers and insurance regulators …