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 … payout discrepancies for precipitation risk. Practical implications – Given that payouts in a given area are highly …

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 …

reduction in risk fromemploying straightforward temperature derivatives is significant. Finally, precipitation hedgesare found … traded weather derivatives to hedge agriculturalproduction and insurance risk. …