Weather indices for designing micro-insurance products for small-holder farmers in the tropics.
Agriculture is inherently risky. Drought is a particularly troublesome hazard that has a documented adverse impact on agricultural development. A long history of decision-support tools have been developed to try and help farmers or policy makers manage risk. We offer site-specific drought insurance methodology as a significant addition to this process. Drought insurance works by encapsulating the best available scientific estimate of drought probability and severity at a site within a single number- the insurance premium, which is offered by insurers to insurable parties in a transparent risk-sharing agreement. The proposed method is demonstrated in a case study for dry beans in Nicaragua.
Catchment Science Centre, Kroto Research Institute, University of Sheffield, North Campus, Sheffield, United Kingdom.
Jacqueline
J
Díaz Nieto
Myles
M
Fisher
Simon
S
Cook
Peter
P
Läderach
Mark
M
Lundy
D000383:Agriculture / Q000191:economics*; D003906:Developing Countries; D055864:Droughts; D007887:Fabaceae; D005843:Geography; D006801:Humans; D007341:Insurance / Q000191:economics; D007343:Insurance Carriers / Q000191:economics; D008962:Models, Theoretical; D009527:Nicaragua; D011336:Probability; D012306:Risk; D018570:Risk Assessment; D014329:Tropical Climate; D014887:Weather