Annotated Bibliography

Microinsurance aspects in agricultural insurance

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Year of publication: 2009  
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Weather Risk and the Viability of Weather Insurance in Western China
Turvey, C.G.; Kong, R.; Belltawn, B.
American Agricultural Economics AssociationMilwaukee Wisconsin
33
> PDF (100 KB)
This paper presents preliminary results on the possible demand for weather insurance in China.Results from 1,564 farm households from Western and Central China between October 2007 and October 2008 suggest that the greater risk for farmers is drought followed by excessive rain.Heat is less critical as a risk but more significant than cool weather. Results suggest a stronginterest in precipitation insurance with 50% and 44% of respondents indicating strong interest inthe product. Supplementary results indicate that interest is equal between planting, cultivating,and harvesting. Furthermore results suggest that farmers are willing to adopt new ideas, andwhere possible already take action to self insure through diversification and other means. Examples and discussion of how weather insurance can be implemented.
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Index Insurance and Climate Risk: Prospects for Develoment and Disaster Management
Helmuth, M. E.; Osgood, D.; Hess, U.; Moorhead, A.; Bhojwani, H.
        
123
> PDF (2 MB)
This issue of Climate and Society examines the use of index insurance to help reduce vulnerability and poverty and adapt to climate change. Experience to-date has been limited to individual case studies, which show promise of lessening the impacts of climate shocks and enabling investment and growth in the agriculture sector. But these case studies have also uncovered significant questions that must be answered in order to start implementing index insurance at a scale relevant to attaining meaningful development impacts. The publication process was kicked off at a high level roundtable event, co hosted by the IRI and Swiss Re, in cooperation with the Global Humanitarian Forum.
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Pre-feasibility analysis: index-based weather risk transfer in Mali
J. Hartell, J. Skees
USAID/GlobalAgRisk
63
http://tinyurl.com/y8cdqwm
The pre-feasibility analysis presents the basic conditions necessary to support development of a market for index-based insurance products that may allow either farmers or lenders to transfer highly correlated drought risk and investigates the opportunities and constraints of this type of market development in the Malian context.
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Government catastrophe funds: An idea that´s bad for America´s insureds
  
RAA
4
http://tinyurl.com/y9ya22p
In the wake of two years of catastrophic hurricanes (and other natural disasters), some insurers are calling for state and federally funded “catastrophe funds” (Cat Funds). These insurers say that government should participate in assuming the risk of widespread damage from natural disasters. The paper of the Reinsurance Association of America presents their reasons why this approach is misguided. Protecting the property of those who live in areas affected by natural catastrophes is most effectively and efficiently done through properly priced and well-managed private insurance and reinsurance arrangements.
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Adaptation to Climate Change: Linking disaster risk reduction and insurance
Warner, Ranger, Surminski, Arnold
 
30
http://tinyurl.com/ybrqrca
The paper is an initial attempt to consider the role in adaptation of insurance and related risk sharing and risk transfer methods, in the context of a comprehensive approach to risk reduction and risk management. One key question is whether, and how, insurance-related mechanisms could contribute as a risk reduction policy and thereby could lead to reduced disaster risks and reduced losses, particularly for developing countries and vulnerable groups.
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The promise of index insurance
Xavier Gine
The World Bank
http://go.worldbank.org/ABVLD4A560
The third in the World Bank’s  new series of impact notes highlights an example of where randomized experiments have been used to help understand the impact of a new insurance product first developed by CRMG at the World Bank and various public and private partners in several client countries.
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Mali and Peru- The potential and limitations of index-based weather insurance
Skees
USAID
       
> PDF (720 KB)
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Micro Insurance for Climate Change: Adaptation from the bottom of the pyramid
Rahman
United Nations University-Institute of Advanced Studies, Japan
    
  
 
The study will investigate the potentiality of micro insurance as a risk-transfer mechanism for climate change risk and tries to find whether it could reduce vulnerability of the poor people in developing countries. The most of the case studies in literature found that micro insurance could be new instrument reducing vulnerability of climate related risk by forging greater links between climate science, disaster risk management and the micro insurance services to integrate risk management into normal development practice.
  
Year of publication: 2008  
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Natural catastrophe risk: Creating a comprehensive national plan
  
NAIC
66
http://tinyurl.com/yea35ju
The National Association of Insurance Commissioners (NAIC) has actively examined approaches to insuring against natural disasters for the last four decades. The paper quotes from earlier documents recommending among others, that the Government, in cooperation with the insurance industry and the NAIC, study and develop a mechanism that would provide additional capacity for catastrophe insurance and would allow for the accumu¬lation of funds from which catastrophe losses could be paid without having those funds depleted by Federal income tax in loss-free years." A possible model for implementing this concept of tax deferred catastrophe reserves was developed, and has advocated legislative changes to the Federal Tax Law since 2000. This model was revisited and recommended possible changes.
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Agriculture credit, Agriculture insurance and agriculture credit insurance – international experience and development perspective in china
     
     
      
      
This report is a result of “Microfinance and Agricultural Financial Reform Program “under the cooperation between PBC and GTZ. The report contains two parts introducing the “international experience” in China. Agricultural insurance should be perceived predomi¬nant¬ly as a farm-level risk management instrument. The farmers should have freedom to choose most effective agricultural risk management instruments. Some share of risk should stay with the producer to minimize classical agricultural problems including moral hazard, asymmetry of information and adverse selection.
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Weather index-based microinsurance in developing countries: analysis and evaluation
Wilhelm, V.
Vdm Verlag Dr. Müller
76
     
A bigger part of the population lives in low-income countries and is primarily dependend on agriculture. Not only, but also as a consequence of the ongoing climate change, these people are ever more exposed to natural hazards such as drought or floods, endangering their harvest and their lives. Weather index-based microinsurance is a new promising tool for the poor, especially designed to overcome the problems brought along by other financial instruments like credit, savings or foreign aid. Index-based microinsurance addresses the core problem of the poor: food insecurity. Lately, several parties, including international organisations, (re)insurance companies, microfinance institutions, NGOs and governments subsidize and project-manage microinsurance projects. It needs a lot of willpower and conviction to offer insurance to thousands of families and farmers, considering the very low premiums paid. Still, the Law of Large Numbers, that is volume, makes this market so attractive. This book offers an analysis of index-based microinsurance. It evaluates whether it is a sustainable instrument to reduce world poverty.
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Challanges for use of index-based weather insurance in lower income countries
Skees, F.R. 
GlobalAgRisk, Inc.
  
> PDF (2,5 MB)         
This article provides a perspective on the progress and challenges associated with indexbased risk transfer products (IBRTPs) in lower income countries. Effectively, IBRTPs are a proxy for loss and a vehicle to transfer risk to insurance or capital markets. These products are designed to pay out when an independent physical measure of a loss event (such as extreme weather, area yields, or even complex process models that use satellite images) crosses a threshold value of the index that indicate catastrophic conditions are creating serious problems for clients. The concept of creating an index to proxy losses is not new. Indian scholars were writing about the merits of these ideas in the early 1900s (Chakravarti, 1920), and at the University of Chicago, Professor Harold Halcrow completed a Ph.D. dissertation on area-yield crop insurance in the 1940s (Halcrow, 1949). The interest in using a variety of IBRTPs in lower income countries has grown in recent years. A major objective of this article is to share a vision for what is possible to achieve and highlight important policy and market issues that merit serious academic attention. There are cautions to be raised. While there are enough pilot projects to begin assessing significant product design and project implementation issues, important behavioral outcomes from firm-level decision makers cannot yet be assessed due to the limited experience with these products. These efforts in lower income countries must also be placed in a larger economic and public policy context.
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Investigating the impact of climate change on the robustness of index-based microinsurance in Malawi
Hochrainer, S., Mechler, R., Pflug, G., Lotsch A.
World Bank 
   
     
This analysis explores the potential impact of climate change on the viability of the Malawi weather insurance program making use of scenarios of climate change-induced variations in rainfall patterns. The analysis is important from a methodological and policy perspective. By combining catastrophe insurance modeling with climate modeling, the methodology demonstrates the feasibility, albeit with large uncertainties, of estimating the effects of climate change on the near and long-term future of microinsurance schemes serving the poor. By providing a model-based estimate of the incremental role of climate change, along with the associated uncertainties, this methodology can quantitatively demonstrate the need for financial assistance to protect microinsurance pools against climate-change induced insolvency. This is of major concern to donors, nongovernmental organizations, and others supporting these innovative systems - those actually at risk - and insurers. A quantitative estimate of the additional burden that climate change imposes on weather insurance for poor regions is of interest to organizations funding adaptation.
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The potential of weather index insurance for spurring a Green Revolution in Africa
Skees, J.R., Collier, B.
GlobalAgRisk, Inc.
53
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Agricultural insurance - Background and context for climate adaptation discussions
Skees, J.R., Barnett, B.J., Collier, B.
GlobalAgRisk, Inc.
35
> PDF (660KB)
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Agricultural microinsurance - Global practices and prospects
Roth, J., McCord, M.J.
The Microinsurance Centre
50
> PDF (3 MB)
This book has been written for people who would like to know how agricultural insurance could play a role in improving the livelihoods of the rural poor. It will be useful for development agents such as donors, development banks and development workers in NGOs, co-operatives, credit unions and microfinance institutions (MFIs). It is written for a reader who has no prior knowledge of insurance. The first chapter introduces the principles of insurance. The second chapter presents four agricultural microinsurance case studies, using the principles described in the first chapter to analyze the successes, failures and challenges of providing agricultural microinsurance in practice. The third chapter summarizes a comprehensive literature survey to establish what kinds of agricultural microinsurance products exist worldwide, and how they function. The fourth and final chapter discusses whether, given all the challenges, agricultural microinsurance can play a role in improving the livelihoods of the rural poor.
 
Year of publication: 2007  
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Assessing opportunities for agricultural insurance and risk coping strategies in Vietnam, microfinance opportunities
    
   
80
http://tinyurl.com/ybs6r54
The Asian Development Bank is assisting the Vietnam government with the development of risk management tools for the agricultural sector that is carried out in two phases. The first phase included market research and institutional assessments and resulted in an agricultural insurance product design. The second phase involves a pilot implementation of the insurance in a selected region of Vietnam. This report summarizes the results of the market research that led up to the product design.
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Agriculture insurance in India
Sidharth Sinha
CIRM
56
http://tinyurl.com/y9zrclq
There are problems with both the design and delivery of crop insurance schemes in India. These problems could be overcome with rainfall insurance with a well developed rainfall measurement infrastructure. Private and public insurers are currently experimenting with rainfall insurance products. Given the current levelsof yield and rainfall variability the actuarially fair premium rates are likely to be high and in many cases unattractive or unaffordable. Instead of adopting the easy and unsustainable route of large subsidies, in the long term the government should consider risk mitigation through improvements in the irrigation and water management infrastructure.
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Rural household vulnerability and insurance against commodity risks – evidence from the United Republic of Tanzania
ed. L. Christiaensen & A. Sarris
FAO Commodities and Trade Technical Paper 10
231
http://tinyurl.com/y8l2hgh
This report assesses the nature and the extent of vulnerability among rural households in Tanzania with a particular focus on smallholder cash crop growers though exploring all risks, including the decline in commodity prices. It further explores the potentialrole for market based insurance schemes such as commodity price and weather based insurance to mitigate household vulnerability. Two rounds of specifically designed surveys of900 households were conducted in 2003 and 2004 in two cash crop growing region in Tanzania. The inclusion of both a richer (Kilimanjaro) and a poorer (Ruvuma) Region and their contrasting experiences substantially enriches the policy guidance emerging from the report. The report applies descriptive, econometric and contingent valuation techniques toachieve its objectives.
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Weather and agri risk solutions for emerging markets
Ulardic, Christina
Swiss Re
19
http://tinyurl.com/ycccdam
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Disaster insurance for the poor?- A review of microinsurance for natural disaster risks in developing countries
Mechler, Linnerooth-Bayer
ProVention/IIASA
32
http://tinyurl.com/ydw35xs
This desk-top study reviews microinsurance schemes that provide cover for natural disaster risks in develop¬ing countries. The intent is not to be exhaustive – many schemes are in the planning stages– but to give an over¬view of the potential and challenges of microinsurance for the poor. The document provides 1) background infor¬mation and a discussion of the benefits and limitations of risk transfer and pooling, 2) different organizational forms that microinsurance can take, 3) available evidence on the organization, scope and operations, and 4) the viability of catastrophe microinsur¬ance.The paper summarising the main findings with regard to the potential of catastrophe microinsurance to protect the poor against the consequences of natural disaster shocks, and the significant challenges in making this protection viable.
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Creating insurance markets for natural disaster risk in lower income countries: The potential role for securitization
Skees, Barnett, Murphy
EAAE, Germany
17
http://tinyurl.com/y97wcj2
This paper considers the potential for securitizing index-based insurance products that transfer weather and natural disaster risks from lower income countries. The document 1) presents a brief overview of why markets for natural disaster risks are important in lower income countries, 2) a review of some recent activities using index-based weather insurance, 3) explains how natural disaster risks are handled in higher income countries. These examples along with the index-based livestock insurance pilot project in Mongolia illustrate how layers, or tranches, of natural disaster risk can be financed during the product development phase by creating structures similar to the Special Purpose Vehiclesused in catastrophe bond, mortgage bond, and the emerging microfinance bond markets. The paper refers to these investment alternatives as micro-CAT bonds since the principal amounts would be small relative to the existing CAT bond market.
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Innovations in Insurance for Weather-Related Losses: Index Insurance
Skees, J., A. Murphy, M. J. McCord
AMAP Microinsurance Note #5. April 2007
    
> PDF (240 KB)   
The rural poor, economically dependent on agricultural production, face significant risks to their livelihoods from catastrophic weather events that cause widespread crop failure, with implications not only for the affected households, but for the whole rural economy. Index insurance is an innovation that circumvents many of the fundamental problems that hamper the development of insurance for weather risks in lower income countries. Payments are made based upon an objective index, with no need to calculate actual losses for each individual.
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Weather Risks, Index Insurance and Developing Financial Services for the Rural Poor
Skees, J.R. and B. Collier
Microfinance Insights. Vol. 5 (2007). Pp. 31-33.
   
      
Despite significant progress in microfinance and microinsurance in many developing countries, the outreach to the poor and the most vulnerable is still very limited. This article describes the role of index insurance and its role in dealing with agriculture and natural disasters. The authors explain how index can be used as the proxy for loss, reducing transaction costs and making agricultural insurance more affordable to smallholders.
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Designing Weather Insurance Contracts for Farmers in Malawi, Tanzania, and Kenya
Osgood, D.E, McLaurin, M. Carriguiry, M., Mishra, A., Fiondella, F., Hansen, J., Peterson, N., and N. Ward
Final Report to the Commodity Risk Management Group
             
> PDF (3,4 MB)                        
Index insurance is a relatively new weather risk management tool. While traditional insurance insures against crop failure, index insurance insures for a specific event or risk, such as rainfall deficits. The index insurance can be more cost effective since there is no need for infield assessment of damage because payouts are triggered by weather data directly. Index insurance addresses two problems associated with traditional crop insurance: moral hazard (incentives for a farmer to let a crop die in order to get an insurance payout) and adverse selection (in which insurance is priced based on the risks of the entire population but only the most vulnerable farmers purchase insurance). However, index insurance only provides partial protection and is therefore only one part of a complete risk management package. It is critical that the client have a comprehensive understanding of exactly what risks are covered (and what risks are not covered) by the index product so that clients can effectively use the insurance as a part of their risk management system. Products must be transparent and completely understandable to the client or they will not be able to play their proper role. We designed and evaluated contracts for Malawi, Kenya and Tanzania. Because some contracts existed for Malawi prior to this project, and since the insurance is in its second year of implementation in Malawi, the Malawi initial contracts and implementation are used as a starting point. Following the project specification, we have developed in depth analysis, such as process based crop simulations and quantitative analysis of historical data, for the Malawi case study. These additional analyses are unique to the Malawi case.
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Scaling up Microinsurance: The Case of Weather Insurance for Smallholders in India
Manuamorn, O.P.
The World Bank
   
> PDF (1,4 MB)    
The objective of this paper is to study the experience of BASIX, which, as the intermediary agent between the insurance company and rural customers, has successfully scaled up the rainfall index insurance program in a three-year period. This paper highlights the technical and operational viability of bringing such an innovative microinsurance product to smallholder farmers in remote rural areas and analyzes the conditions that allow BASIX to do so effectively. By examining BASIX’s experience, the author aims to draw lessons from the project’s implementation that are transferable to other developing countries. The study identified several factors that are key to BASIX’s ability to rapidly expand weather insurance coverage both geographically and in terms of number of beneficiaries. 
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Weather Index Insurance. The Case for South Africa
Mapfumo, S.
Micro Insurance Agency Holdings LLC. 
      
> PDF (240 KB)     
South African smallholders farmers like other farmers in Africa, are faced with high yield variability due to weather related perils such as drought, floods and snow. Their plight is made worse by their inability to access high yielding, disease resistant seed varieties and other required inputs such as fertilizer. To access input loans, they would need to pledge their assets as collateral to banks or microfinance institutions. Most of these farmers do not have such assets. The lack of collateral and their high dependence on rainfall make smallholder farmers high risks and most banks do not avail their loans to them. On the other hand, medium and large-scale farmers not only have access to finance, but also access risk transfer mechanisms such as multi-peril crop insurance (MPCI). Though not very efficient, MPCI has not even been attempted as a risk transfer mechanism in the micro-level farming community. This is because issues of moral hazard, adverse selection and high monitoring and administration costs would be even worse with these farmers than with medium and large scale ones. Given the size of the land holding by smallholder farmers, per field loss adjustment costs are considerable and hence such an approach is inappropriate. In light of the above, our challenge then, is to design and implement an alternative efficient and cost effective crop failure insurance program that can easily be reinsured and distributed to micro-level farmers. Weather index insurance attached to input finance proved very popular in Malawi where two financial institutions provided loans to farmers to purchase high yielding seed and other chemicals. In times of drought, the farmers’ debt to the financier is paid off. Since the majority of farmers in the pilot have little or no collateral the insurance policy is acting as some form of collateral to the bank.
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Microinsurance apsects in agriculture
T. Levin and D. Reinhard
Munich Re Foundation, CGAP Project
   
      
Agricultural microinsurance in the context of this discussion paper involves the broad question of how low-income farmers close to or below the poverty level can be indemnified for agricultural losses due to severe weather conditions – regardless of the level of the insured (micro: individual; meso: community, farmer association, etc.; macro: national institution, government). In other words, it should be differentiated from the term “microinsurance” used purely to describe the level of the insured (individual). It is very important to assess the farmer’s risks and the appropriate coping strategies and instruments. Especially risks resulting in small losses, with a high predictability of occurring or high frequency of occurrence, require other strategies such as savings or emergency loans rather than insurance solutions. Only exceptional risks leading to high losses are considered to be insurable. Thus, agricultural insurance is likely to complement, rather than displace, existing ways of coping with risk. This paper is a joint effort between GTZ (Thomas Levin) and the Munich Re Foundation (Dirk Reinhard) to provide a short overview of the current discussions about agricultural insurance in developing countries. It is based on literature research and analysis of more than 70 publications as well as on interviews with reinsurance experts from Munich Re, a global reinsurance company. This discussion paper is not intended to be an exhaustive compendium. However, it can serve as a basis for more detailed research and for triggering further discussion on the way forward for the CGAP Sub Group on Microinsurance in Agriculture. CGAP, the Consultative Group to Assist the Poor, is a consortium of 33 public and private development agencies working together to expand access to financial services for the poor, referred to as microfinance.
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Innovative agricultural insurance products and schemes. Agricultural management, marketing and finance occasional paper
M. G. Kang
Food and Agricultural Organisation of the United Nations (FAO), Rome
   
> PDF (300 KB) 
Farmers are exposed year round to a variety of risks, both market-related, such as price variations, and non-market-related, such as unfavourable weather, pests, and diseases. Such risks make agricultural production unstable from year to year, affecting the income and welfare of agricultural producers. If agricultural commodities are important food or export crops, the risks eventually reduce foreign exchange earnings and further lead to a lower national income and to reduced long-term productive investments in agriculture. Agricultural insurance, a financial tool to minimize the adverse effects of agricultural risks, has been devised to address the agricultural production or yield risks that are mainly due to adverse climate. However, as agriculture became more sophisticated, producers, marketing companies and bankers are demanding insurance to cover a greater number of risks. Complying with this demand and in order to overcome the limitations of traditional agricultural insurance that originate from the characteristics of agricultural risks (occurring over a wide area at the same time, etc.), new insurance products, schemes and alternatives are continuously being developed. This paper aims at identifying the recently developed innovative products and schemes of agricultural insurance, followed by some alternatives to insurance. It is an introductory guide for policymakers, farmers, and insurance planners.
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Statistical Analysis of Rainfall Insurance Payouts in Southern India
Giné, X., Townsend, R., Vickery, J.
Policy Research Working Paper. The World Bank – Development Research Group. Finance and Private Sector Team
    
> PDF (80 KB)      
Using 40 years of historical rainfall data, this paper estimates a distribution for payouts on rainfall insurance policies offered to farmers in the State of Andhra Pradesh, India, in 2006.The authors find that the contracts primarily protect households against extreme tail events; half the expected value of indemnities paid by the insurance are generated by only 2 percent of rainfall realizations. Contract payouts are significantly correlated cross-sectionally, and also inversely associated with real GDP growth. The paper discusses the implications of these findings for the potential benefits of insurance to households, the risks facing a financial institution underwriting rainfall insurance contracts, and pricing.
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Malawi – Index-linked crop insurance project
N/A
Micro Insurance Agency
4
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The paper provides background information on the index-linked crop insurance product in Malawi. It covers the country’s agricultural risk exposure, product details of the index-based rainfall insurance scheme and illustrates the first practical experiences.
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Insurance in emerging markets: sound development; greenfield for agricultural insurance
Baez, M., Wong. S.
Swiss Re
44
> PDF (1,4 MB) 
Emerging market economies continued to deliver strong growth in 2005 despite genrally risingglobal interest rates and commodity prices. Both, life and non-life insurance premiums areregistered further gains, of 7.5% and 5%, respectively, in the year after adjusting for inflation.While uncertainties stemming from the global interest rate cycle and geopolitical tensions lookset to persist in the near term, the insurance growth outlook for 2006 and 2007 remains sound.Few emerging markets currently offer suffiecient insurance coverage against the broad rangeof production risks inherent in agriculture activities. Total agricultureal insurance premiums inemerging markets were estimated at around USD 1.1 billion in 2005, less than 20% of theglobal total, although emerging markets account for nearly 70% of food production worldwide.A properly-designed risk management system is thus essential for protecting farm operatorsand reinforcing rural development. 
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Developing index-based insurance for agriculture in developing countries
Bryla, Erin; Syroka, Joanna
UN DESA
8
http://www.un.org/esa/sustdev/publications/innovationbriefs/no2.pdf 
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Agents of change-insurers seek growth in developing markets
McDonald, Ian; Pleven, Liam; Bellman, Eric
Wall Street Journal
6
http://users1.wsj.com/lmda/do/checkLogin?mg=wsj-users1&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB117104813170803940.html%3Fmod%3Dtodays_us_nonsub_page_one
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Managing agricultural risk at the country level: The case of index-based livestock insurance in Mongolia
Mahul, Olivier; Skees, Jerry
World Bank
35
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Patterns of rainfall insurance participation in rural India
Gine, Xavier; Townsend, Robert; Vickery, James
N/A
55
http://microfinancegateway.org/redirect.php?mode=link&id=39944 
http://microfinancegateway.org/content/article/detail/39944
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Patterns of rainfall insurance participation in rural India (presentation)
Gine, Xavier; Townsend, Robert; Vickery, James
N/A
20
http://microfinancegateway.org/redirect.php?mode=link&id=40363 
http://microfinancegateway.org/content/article/detail/40363 
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Weather-based index insurance for developing countries (presentation)
Stoppa, Andrea
N/A
81
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The presentation provides an overview of the general concept and principles of index-based weather insurance schemes. An explanation of the design and application of these insurance products is then illustrated by several practical examples (Morocco, India, Malawi, Ethiopia). Risk layering as an important characteristic of country-wide comprehensive risk-management strategies and the critical role of technology in producing good and reliable index data round off the presentation.

 

Year of publication: 2006  
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A system of drought insurance for poverty alleviation in rural areas
J. D. Nieto, S. Cook et al
CIAT/GTZ/CRS
41
A feasibility study of a practical method of drought insurance that is self-sustain¬ing and ready to use by poor farmers, NGOs or other development organizations.
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The Mexican Experience in the Development and Operation of Parametric Insurances Applied to Agriculture
AGROASEMEX
61
http://tinyurl.com/y9pfzht 
The presentation describes a Cat scheme that is designed to protect basic crops (maize, beans, sorghum) in no irrigated areas. Based on the use of biophysical crop models and climate data, a series of thresholds (mini¬mum rainfall) are identified as parameters to detect drought. Monitoring indexes are a useful side-tool to assess spatial extension and severity of drought. In particular, the SPI in small time scales seems to be accurate enough for verification purposes.
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Role of micro insurance in disaster management
Prem, Kunnel and Bhargava, Hemant
   
5
http://tinyurl.com/ycgfqmm
Insurance which was evolved as an instrument for social improvement is being now viewed as a social security tool by various stake holders. A part of the population that were unaffected by risks are contributing to the relief of the affected section, while affected section could be receiving more than what they paid as a premium. This aspect when experienced further strengthens the concept of a co-operative endeavour for which insurance happens to be an edifice. From the concept of risk transfer and risk sharing, insurance can be effectively viewed as an integral part of disaster management.
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Guidelines - National Platforms for Disaster Risk Reduction
     
UN/ISDR-03-2007-Geneva
24
http://tinyurl.com/yekwpbb
The document provides an integrated UN System response to the national priorities and needs identi-fied for Thailand within the framework of the Millennium Development Goals (MDGs). It recognizes disaster risk reduction as one of the priority areas by contributing to environmental management, local governance and the access of vulnerable communities in undeserved areas to quality social services, especially to education.In light of the Hyogo Framework for Action (HFA), referred to as the international framework guiding the development and implementation of disaster risk management strategies, the UNPAF Thailand was presented as a good illustration on how to mainstream DRR into national development planning.
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Abstract:
Ethiopia Drought Insurance Update and 2007 Weather Risk Management Workplan
WORLD FOOD PROGRAMME
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Insurance for Weather risk in Lower Income Countries
GlobalAGRisk, Inc. Lexington
     
                          
                           
This primer focuses on innovation in weather insurance designed to fit the special circumstances of lower-income countries where rural and agricultural financial markets are largely underdeveloped. Weather insurance is important to the long-term economic development of lower-income countries as a means of spurring rural finance and agricultural and rural development. Weather insurance can also help alleviate chronic poverty. The lack of access to weather insurance can cause rural and farm households in lower-income countries to consume their assets to survive an extreme weather event, or their assets may be destroyed, throwing these households into a cycle of poverty with no means of recovery. To be clear, the lack of weather insurance may be only one of several constraints that are slowing progress in economic development and rural financial markets in lower-income countries. As critical as viable insurance markets are for economic stability and development in lowerincome countries, creating these markets is a difficult undertaking. Looking to models from higher-income countries provides unsatisfactory answers. For example, agricultural insurance in higher-income countries is typically heavily subsidized. Lower-income countries cannot afford such heavy subsidies, particularly because a much larger percentage of the population is usually engaged in agriculture. Equally challenging, farm households in lower-income countries typically operate much smaller farm units, compounding the difficulty of providing rural financial services.
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Vulnerability to climate change hazards and risks:crop and flood insurance
Mcleman, R. and Smit B.
The Canadian Geographer. Vol. 50, No. 2 (2006). Pp. 217-226.
      
                  
This paper reviews the widely used concepts of risk and vulnerability as they relate to climate and weather hazards, re-conceptualizes these terms in the context of climate change and illustrates this development using crop and flood insurance as examples. Government subsidization of insurance against risks associated with adverse climatic conditions and weather events, such as flood damage and crop loss, may lead to individual decisions that actually increase the susceptibility of people, property and economic activities to those risks. The processes that give rise to this phenomenon are important in understanding the vulnerability of human populations to climate change. In many regions, existing conditions that give rise to flooding or crop failure are likely to be exacerbated by climate change over coming decades. In the climate change field, vulnerability has been conceptualised as a function of exposure to risk and as an ability to adapt to the effects. In this context, crop and flood insurance are possible adaptive measures. This treatment of vulnerability compares with similar concepts in insurance and risk management whereby events that cause loss are known as perils, and physical conditions, such as climate change, that increase the likelihood of a peril occurring, are known as physical hazards. Human behaviour that increases the exposure of individuals to potential perils is known as morale hazard or moral hazard, depending on the intentions of the person. Vulnerability consequently becomes a function of hazard and responses taken to reduce risk. Examples of crop and flood insurance programs from Canada, New Zealand and the U.S. are used to show how subsidized insurance might create a morale hazard in addition to physical hazards such as short-term weather events and long-term climate change, resulting in a higher level of vulnerability than would otherwise exist. These findings demonstrate that human behaviour affects the formation of both exposure and adaptive capacity in the context of vulnerability to climate change. Responses taken to increase adaptive capacity may in some cases be offset by individual behaviour that increases exposure. 
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Drought monitoring approaches for parametric agro-reinsurance in Mexico (presentation)
N/A
AGROASEMEX
26
http://www.ncdc.noaa.gov/oa/climate/research/2006/nadm-workshop/20061019/1161269400.pdf 
Presentation about an index-based rainfall insurance product introduced by AGROASEMEX, including contract specifications and a case study about the insurance product in the State of Mexico.
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The Mexican experience in the development and operation of parametric insurance oriented to livestock
N/A
AGROASEMEX
59
http://www.agroasemex.gob.mx/media/publicaciones/ganaderia_in.pdf 
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The Mexican experience in the development and operation of parametric insurances applied to agriculture
N/A
AGROASEMEX
61
http://www.agroasemex.gob.mx/media/publicaciones/agricola_in.pdf 
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Microinsurance for risk mitigation and crisis recovery
N/A
Banking With The Poor Network
9
http://microfinancegateway.org/redirect.php?mode=link&id=37406 
http://microfinancegateway.org/content/article/detail/37406 
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CGAP Focus Note 39
N/A
CGAP Working Group on Microinsurance
16
http://www.microfinancegateway.org/redirect.php?mode=link&id=36552 
N/A
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MICROINSURANCE Newsletter No.10
N/A
CGAP Working Group on Microinsurance
6
http://www.microfinancegateway.com/redirect.php?mode=link&id=34440 
http://www.microfinancegateway.org/content/article/detail/34440 
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Performance indicators for microinsurance practitioners
N/A
CGAP Working Group on Microinsurance
58
http://www.microfinancegateway.org/redirect.php?mode=link&id=37292 
N/A
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Insurance schemes for small farmers
Mommens, Xavier
European Microfinance Programme
23
http://microfinancegateway.org/redirect.php?mode=link&id=33497 
http://microfinancegateway.org/content/article/detail/33497 
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Agricultural insurance in Mesoamerica
Arias, Diego; Covarrubias, Katia
Inter-American Development Bank
68
http://www.microfinancegateway.com/redirect.php?mode=link&id=33251 
http://www.microfinancegateway.com/content/article/detail/33251 
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Abstract:
Emerging trends in farm insurance – Weather insurance (presentation)
Prashad, Pranav
ICICI Lombard
22
http://www.ficci.com/media-room/speeches-presentations/2006/oct/agri/ParallelSessionI(a)/Prashad.pdf
The presentation from the national ICICI Lombard insurance company in India provides an overview of the agriculture sector and its risks in India. Furthermore, it explains the functionality of index-based insurances and illustrates some example schemes (coriander insurance using temperature as a trigger, castor and groundnut insurance using the amount of rainfall as a trigger, etc.). An overview of the latest index-based weather insurance products in India and of the strategies to overcome the challenges in index products round off the presentation.
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Mapping climate vulnerability and poverty in Africa
 N/A
ILRI
200
http://www.ilri.org/ILRIPubAware/Uploaded%20Files/Mapping%20Climate%20Vulnerability%20and%20Poverty%20in%20Africa.pdf
N/A
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Risk management in agriculture for natural hazards
Hartell, Jason; Ibarra, Hector; Skees, Jerry; Syroka, Joanna
ISMEA
201
PDF (1,5 MB)
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Rethinking International Disaster and Finance
Syroka, Johanna; Wilcox, Richard
Journal of International Affairs
17
N/A
In order to maximize its value to the world's most vulnerable populations, often the victims of these disasters, the international aid community must endeavour to create an effective and equitable international emergency aid system. To reach this dual goal requires a conceptual shift from a reactive emergency aid business model to a proactive risk-management investment model. Vulnerable populations almost continuously suffer some losses as a result of localized, frequent natural calamities and manmade hazards. To treat these events as emergencies obscures the fact that some populations have become so poor that they can no longer support themselves even in normal natural conditions. From a financial perspective, providing assistance to vulnerable populations to enable them to survive normal one-in-two- or one-in-three-year fluctuations in weather and other expected events is an investment proposition. Aiding populations to cope with extreme events is an insurance proposition. The first needs a predictable, steady flow of investment funds; the second requires contingency funds to cope with probable but uncertain events. The second is the focus of this article.
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Abstract:
Poverty Traps and Index-Based Risk Transfer Products
Barnett, Barry; Barrett, Christopher; Skees, Jerry
Second Review for World Development
34
http://www.aem.cornell.edu/faculty_sites/cbb2/Papers/Poverty%20Traps%20and%20Index%20Based%20Risk%20Transfer%20Products%20July%202006.pdf
This article reviews relevant threads of the poverty traps literature to motivate a description of the opportunities presented by innovative index-based risk transfer products.
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Index insurance for weather risk in lower-income countries
GlobalAgRisk
USAID
51
http://microlinks.org/file_download.php/Index+Insurance+Primer.pdf?URL_ID=14239&filename=11656047761Index_Insurance_Primer.pdf&filetype=application%2Fpdf&filesize=286990&name=Index+Insurance+Primer.pdf&location=user-S/
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Innovations in risk-management index insurance presentation
GlobalAgRisk
USAID
43
http://www.microlinks.org/file_download.php/Index_based+Insurance_Seminar%239.ppt?URL_ID=13610&filename=11619846961Index_based_Insurance_Seminar%239.ppt&filetype=application%2Fvnd.ms-powerpoint&filesize=868352&name=Index_based+Insurance_Seminar%239.ppt&location=user-S/
Presentation about index insurance in agriculture including shortfalls of traditional insurance, risk-layering strategies and a case study about index-based insurance in Peru
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Malawi – Weather insurance mitigates risk
N/A
USAID
2
http://www.microfinancegateway.org/redirect.php?mode=link&id=33738 
http://www.microfinancegateway.org/content/article/detail/33738 
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Out of 'microfinance' work springs insuring loans for the impoverished
McDonald, Ian; Pleven, Liam
Wall Street Journal
2
http://online.wsj.com/article/SB116078249852192600.html 
N/A
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Saving livelihoods through weather risk management
Hess, Ulrich; Im, Seon Yeon
WFP
10
N/A
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Ethiopia – Integrated risk financing to protect livelihoods and foster development
Hess, Ulrich; Wiseman; William; Robertson, Tim
WFP, World Bank, DFID
13
http://www.virtualcentre.org/en/ele/econf_03_alive/download/s1_10_Ethiopia.pdf 
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Piloting Index-Based Livestock Insurance in Mongolia
Mahul, Oliver; Skees, Jerry
World Bank
4
http://rru.worldbank.org/PapersLinks/Open.aspx?id=7424
Mahul and Skees describe the index-based livestock insurance program in Mongolia designed in the context of a World Bank lending operation with the Government of Mongolia. This project presents a unique opportunity to design and implement an original agriculture insurance program using a country-wide agricultural risk management model designed by the World Bank.
Index-based livestock insurance project report:
http://www.microfinancegateway.com/content/article/detail/33190
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Global index insurance facility
N/A
World Bank
6
http://www.proventionconsortium.org/themes/default/pdfs/GIIF_overview_Feb06.pdf 
N/A
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Quarterly Progress Report July to Sept 2006 Mongolia
N/A
World Bank
6
http://www.iblip.mn/pages/File/Uliraliin%20tailan%20tovch%20ENG.pdf 
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Nicaragua – A System of drought insurance for poverty alleviation in rural areas
Nieto, Jacqueline Diaz; Cook, Simon; Lundy, Mark; Fisher, Myles; Sanchez, Diego; Guevara, Edward
N/A
94
http://microfinancegateway.org/redirect.php?mode=link&id=35365 
http://microfinancegateway.org/content/article/detail/35365 
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Abstract:
Stakeholder´s View in Reducing financial vulnerability to natural disasters in the agricultural sector in Mexico
Saldaña-Zorrilla, Sergio Omar
N/A
65
http://www.start.org/Programme/advanced_institute3_web/Final%20Papers/SALDANA%20FINAL%20PAPER%20AIVGEC.pdf 
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Year of publication: 2005  
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Weather-indexed insurance for reduction of livelihood, vulnerability and climate change
Heltberg,Rasmus; Jorgensen, Steen Lau;  Bennett Siegel, Paul
CRMG, ARD, World Bank
56
http://tinyurl.com/y8ryc5s 
This concept note proposes that index-based weather insurance offers an appropriate mechanism to reduce the systemic vulnerability of poor populations caused by weather hazards.  Such a mechanism simultaneously supports the goals of risk management and climate change adaptation which commonly stress vulnerability reduction.  At the micro-level, weather insurance protects the livelihoods of poor individuals from the vagaries of weather.  At the macro-level, the index instruments could provide a risk financing vehicle for the safety nets institutions that help lesson the impact of weather-related shocks on vulnerable populations.  In addition to the risk transfer function, the timely and cash-based nature of index-based insurance payouts also brings early financial intervention that enhances the incentive for adopting more sustainable measures for climate change adaptation.  
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Indian crop insurance programme (presentation)
Bhandari, Suparas
AIC India
30
http://www.itf-commrisk.org/documents/meetings/AgInsurance%202005/bhandari.pdf 
The presentation from the national Agriculture Insurance Company (AIC) in India provides an overview of developments in the crop insurance market in India and AIC. Furthermore, it discusses the National Agricultural Insurance Scheme, the Farm Income Insurance Scheme and the Rainfall Insurance Scheme. It closes with an outlook on new and future products as well as the crop insurance penetration targets.
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CGAP Focus Note 27
N/A
CGAP Working Group on Microinsurance
8
http://www.microfinancegateway.org/redirect.php?mode=link&id=26287 
N/A
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Lessons learnt the hard way
N/A
CGAP Working Group on Microinsurance
48
http://www.microfinancegateway.org/redirect.php?mode=link&id=24121 
N/A
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Occasional Paper No.11
Christen, Robert; Pearce, Douglas
CGAP Working Group on Microinsurance
52
http://www.microfinancegateway.org/redirect.php?mode=link&id=27745 
http://www.microfinancegateway.org/content/article/detail/27745 
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Abstract:
Insurance of crops in developing countries
Roberts, R.A.J.
FAO
86
http://www.ruralfinance.org/servlet/BinaryDownloaderServlet/27021_Insurance_of_crops.pdf?filename=1135189287882_InsuranceCrops_withcover.pdf&refID=27021 
http://www.microfinancegateway.com/content/article/detail/31311 
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Livestock and aquaculture insurance in developing countries
Roberts, R.A.J.
FAO
81
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http://www.microfinancegateway.com/content/article/detail/31305 
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Abstract:
Index-based livestock insurance in Mongolia – Potentialimpact on financial sector development
Goes, Anne
GlobalAgRisk
7
http://www.globalagrisk.com/pubs/Index%20Based%20Livestock%20Insurance%20in%20Mongolia.pdf 
The document describes the index-based livestock insurance programme in Mongolia designed in the context of a World Bank lending operation with the government of Mongolia. It provides all details of the insurance scheme – a combination of self-insurance by herders, market-based insurance, and social insurance – and explains the syndicate pooling arrangement protecting participating insurance companies against excessive insured losses.
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Abstract:
Agricultural insurance revisited: New developments and perspectives in Latin America and the Caribbean
Wenner, Mark
Inter-American Development Bank
77
http://www.iadb.org/sds/doc/RUR-Agricultural%20InsuranceFINALVERSIONENGLISHJULY06.pdf 
http://www.microfinancegateway.com/content/article/detail/34395 
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Insurance against poverty
Dercon, Stefan
UNU WIDER
25
http://www.wider.unu.edu/events/book-launch-20-november-2003/pb-iap.pdf 
N/A
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Abstract:
Long- term impacts of short-term shocks: poverty traps and environmental disasters in Ethiopia and Honduras
Carter, Michael; Little, Peter; Mogues, Tewodaj; Negatu, Workneh
USAID
4
http://dec.usaid.gov/index.cfm?p=search.getCitation&CFID=206134&CFTOKEN=25083223&id=v_28EAA8E4-D566-FC5C-D65C0BC30DE48978&rec_no=137953
http://www.povertyenvironment.net/?q=long-term_impacts_of_short-term_shocks_poverty_traps_and_environmental_disasters_in_ethiopia_and_honduras
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Developing rainfall-based index insurance in Morocco
Skees, Jerry; Gober, Stephanie; Varangis, Panos; Lester, Rodney; Kalavakonda, Vijay
World Bank
39
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http://www.microfinancegateway.com/content/article/detail/2874 
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Global index insurance facility presentation
N/A
World Bank
39
http://www.itf-commrisk.org/documents/meetings/Interlaken2005/giif2.pdf 
N/A
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Managing agricultural production risk
N/A
World Bank
129
http://siteresources.worldbank.org/INTARD/Resources/Managing_Ag_Risk_FINAL.pdf 
http://www.microfinancegateway.com/content/article/detail/31309 
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Microinsurance – Enhancing the outreach and sustainability of risk mitigation services for the poor
Mahajan, Vijay
World Bank
5
http://web.worldbank.org/servlets/ECR?contentMDK=20722913&contTypePK=217180&folderPK=64187549&sitePK=543574&callCR=true
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Mongolia index-based livestock insurance project
Belete, Nathan
World Bank
14
http://www.microfinancegateway.org/redirect.php?mode=link&id=33190 
http://www.microfinancegateway.com/content/article/detail/33190 
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Weather-based insurance in southern Africa – Malawi
Hess, Ulrich; Syroka, Joanna
World Bank
78
http://www.itf-commrisk.org/documents/malawi.pdf 
http://www.microfinancegateway.com/content/article/detail/37405 
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Innovations in government responses to catastrophic risk-sharing in developing countries
Skees, Jerry R.; Barnett, Barry; Hartell, Jason
N/A
44
http://www.agroinsurance.com/files//documents/Skees_Barnett_Hartell%20-%20eng.pdf 
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Insuring against bad weather – Recent thinking
Hazell, Peter; Skees, Jerry
N/A
19
http://microfinancegateway.org/redirect.php?mode=link&id=40424 
http://microfinancegateway.org/content/article/detail/40424 

 

Year of publication: 2004  
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MICROINSURANCE Newsletter No.3
N/A
CGAP Working Group on Microinsurance
6
http://www.microfinancegateway.org/redirect.php?mode=link&id=19000 
N/A
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New ways for rural finance – Livestock insurance schemes in Vietnam
Dufhues, Thomas; Lemke, Ute; Fischer, Isabel
N/A
10
http://microfinancegateway.org/redirect.php?mode=link&id=40541 
http://microfinancegateway.org/content/article/detail/40541 
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Growth and Shocks: evidence from rural Ethiopia
Dercon, Stefan
Journal of Development Economics
42
http://www.economics.ox.ac.uk/members/stefan.dercon/growthshocks.pdf
Using panel data from rural Ethiopia, the article discusses the determinantsof consumption growth (1989-97), based on a microgrowth model,controlling for heterogeneity. Consumption grew substantially, but withdiverse experiences across villages and individuals. Rainfall shocks have asubstantial impact on consumption growth, which presists for many years.There also is a persistent growth impact from the large-scale famine inthe 1980s, as well as substantial externalities from road infrastructure.The persistent effects of rainfall shocks and the famine crisis imply thatwelfare losses due to the lack of insurance and protection measures arewell beyond the welfare cost of short term consumption fluctuations.
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Weather derivatives: Concept and application for their use in South Africa
Geyser, J.M.
University of Pretoria
27
http://www.up.ac.za/academic/ecoagric/fulltext/2004-03.pdf 
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Innovation in agricultural insurance-linkages to microfinance
Skees, Jerry (GlobalAgRisk)
USAID
24
http://microfinancegateway.org/redirect.php?mode=link&id=20860 
http://www.microfinancegateway.com/content/article/detail/20860 
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Poverty Traps and Safety Net
Barrett, Christopher; McPeak, John
N/A
31
http://aem.cornell.edu/faculty_sites/cbb2/Papers/BMT_povertytraps_june2004.pdf
This paper explores three interrelated questions that have been central to Erik Thorbecke’s past research and his current concerns: What is the etiology of chronic poverty and vulnerability? How does nutrition-related health risk affect patterns of chronic poverty and vulnerability? What are the implications for the design of development policy, especially safety net interventions?

 

Year of publication: 2003  
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Demand for Rainfall-Index based Insurance: A case study from Morocco 
Nancy McCarthy, Environment and Production Technology Division,
International Food Policy Research Institute, Washington
39
http://tinyurl.com/ydhg8fc In this paper, we derive estimates for willingness to pay for rainfall-index based insurance contracts. Surveys were undertaken in four regions in Morocco, representing different mean and variability of rainfall conditions. Results indicate that respondents in the high variability regions preferred contracts that paid out more often (had higher rainfall trigger levels), and which were more costly. In fact, a strong majority of respondents indicated they would purchase these contracts at the fair-value price; the estimated median willingness to pay for such contracts was between 12-20 percent above the fair value contract. However, in the lower rainfall variability regions, the cheaper contracts with lower trigger values were the only contracts for which the estimated median willingness to pay was greater than the fair-value of the contract. Finally, estimated coefficients for explanatory variables such as human and physical assets, debt levels, etc. did not have consistent impacts, either across or within regions.
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Weather risk management for agriculture and agri-business in developing countries; Hess, Richter, Stoppa
IFC, World Bank, PROCOM, Italy
16      
http://tinyurl.com/y9pye4s 
This paper has three components. The first part argues that weather risk causes substantial inefficiencies in developing countries; agri-businesses, faced withunderdeveloped formal financial markets have to rely on traditional WRM that is associated with under¬invest¬ment and over diversification. It is discussed how new WRM can overcome the pitfalls of traditional WRM and have a large development impact.The second section discusses the range of potential uses of new WRM. The final part turns to the operational aspects of a new WRM, studying in detail the case of WRM for cereals in Morocco. 
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Donor guidelines for supporting microinsurance
N/A
CGAP Working Group on Microinsurance
48
http://www.microfinancegateway.org/redirect.php?mode=link&id=13836 
http://www.microfinancegateway.org/content/article/detail/13836 
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Risk management challenges in rural financial markets
Skees, Jerry
GlobalAgRisk
36
http://microfinancegateway.org/redirect.php?mode=link&id=20077 
http://microfinancegateway.org/content/article/detail/20077 
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Demand for rainfall-index based insurance – A case study from Morocco
McCarthy, Nancy
IFPRI
39
http://www.ifpri.org/divs/eptd/dp/papers/eptdp106.pdf 
The paper presents results of a willingness-to-pay study, where respondents were asked to consider their demand for hypothetical rainfall index-based insurance contracts. Surveys were undertaken in four regions in Morocco, representing different mean and variability of rainfall conditions.
    
Results indicate that respondents in the high variability regions preferred contracts that paid out more often (had higher rainfall trigger levels), and which were more costly. In fact, a strong majority of respondents indicated they would purchase these contracts at the fair-value price; the estimated median willingness to pay for such contracts was between 12–20% above the fair-value contract. However, in the lower rainfall variability regions, the cheaper contracts with lower trigger values were the only contracts for which the estimated median willingness to pay was greater than the fair value of the contract. Finally, estimated coefficients for explanatory variables such as human and physical assets, debt levels, etc. did not have consistent impacts, either across or within regions.
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Abstract:
Paving the way forward for rural finance: Synthesis paper and conference proceedings
N/A
USAID
92
http://www.coopdevelopmentcenter.coop/Sector/Microfinance%20&%20Finance/PNACY275.pdf 
The paper includes the conference proceedings of the Paving the Way Forward for Rural Finance Conference in Washington in 2003. It consists of the abstracts of theme papers, more than 40 case studies and a synthesis document that brings together the conference’s vast collection of ideas, innovations and lessons to suggest areas for further development and future direction in rural finance.
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Innovative financial services for rural India Monsoon - Index lending and insurance for smallholders
Hess, Ulrich
The World Bank Agricultural and Rural Development Department, Washington
40
> PDF (160 KB) With the advent of an international market for managing weather-related risk, the use of insurance products based on a weather index is becoming a reality. In Alberta and Ontario, Canada various insurance programs based on weather and vegetative indexes have become mainstream insurance products for farmers. In emerging markets, such as Mexico and South Africa, risk insurance contracts based on weather are also beginning to be used. Following a World Bank Group feasibility study, an IFC-sponsored weather insurance project has developed weather insurance for cereals which will be sold to farmers in Morocco for the 2003/2004 crop season. (Hess, Richter, Stoppa, 2002) In another initiative, the Agricultural and Rural Development Family (ARD) of the World Bank, in collaboration with various private and public partners in India, is now supporting pilot studies to explore the feasibility of insurance for crop loans based on rainfall indexes. This paper outlines an integrated crop loan insurance and risk management product for Indian rural finance and agriculture. This monsoon insurance for crop loans—combined with the risk management account proposed in this paper—could significantly improve farmers’ access to crop loans and their capacity to manage risk. The paper is organized into the following sections:1. the first section defines the problem of access to financial services, how monsoon risk affects that access and how the India government is currently addressing the problem;2. the second section describes the concept of monsoon-indexed lending and risk management accounts for smallholders; and3. the final section describes the findings of a modeling exercise applying the service in India.
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Design and use of weather derivatives in agricultural policies
Hess, Ulrich; Stoppa, Andrea
N/A
18
http://www.itf-commrisk.org/documents/rainfallmorocco.pdf 
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Year of publication: 2002  
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Agricultural insurance in developing countries
Slangen, Anthon
FAO
11
http://oracle3.mapya.es/documentos_pwe/confe/slangen_ing.pdf 
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Can Financial Markets Be Trapped to Help Poor People Cope with Weather Risks?
Skees, Jerry; Varangis, Panos; Larson, Donald; Siegel, Paul
UNU- WIDER
32
http://www.microfinancegateway.org/redirect.php?mode=link&id=20631
http://www.microfinancegateway.org/content/article/detail/20631
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Weather Indexes for Developing Countries
Varangis, Panos; Skees, Jerry; Barnett, Barry
World Bank
16
http://www.microfinancegateway.com/redirect.php?mode=link&id=40809
http://www.microfinancegateway.com/content/article/detail/40809
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Examining the feasibility of livestock insurance in Mongolia
Skees, Jerry; Enkh-Amgalan, Ayurzana
World Bank
41
http://microfinancegateway.org/redirect.php?mode=link&id=3650 
http://www.microfinancegateway.com/content/article/detail/3650 
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Weather risk management for agriculture and agri-business in developing countries
Hess, Ulrich; Richter, Kaspar; Stoppa, Andrea
N/A
16
http://microfinancegateway.org/redirect.php?mode=link&id=39251 
http://microfinancegateway.org/content/article/detail/39251 

 

Year of publication: 2001  
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Insurance against poverty? The 'New Generation' agricultural microinsurance schemes
Mosley, P. Small Enterprise Development, Vol. 12, No. 1 (2001). Pp. 51-58
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Abstract:
Risk Management in Rural Development: A Review
Anderson, Jock
World Bank
62
> PDF (315 KB)
N/A

 

Year of publication: 2000  
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CGAP Focus Note 17
N/A
CGAP Working Group on Microinsurance
4
http://www.microfinancegateway.org/redirect.php?mode=link&id=1213 
N/A

 

Year of publication: 1999  
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New approaches to crop yield insurance in developing countries
Skees, Jerry; Hazell, Peter; Miranda, Mario
IFPRI
40
http://microfinancegateway.org/content/article/detail/2606 
http://microfinancegateway.org/redirect.php?mode=link&id=2606 
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Dealing with commodity price volatility in developing countries
N/A
World Bank
84
http://www.itf-commrisk.org/documents/dsp73.pdf 
N/A

 

Year of publication: 1995  
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Financial implications of agricultural insurance
N/A
UNCTAD
34
N/A
The paper discusses the insurability requirements of risks and their relationship to perils encountered in agricultural insurance. It focuses on the commercial and financial aspects of introducing or increasing agricultural insurance operations.
 
By examining the insurability criteria of agricultural risks and the resulting financial implications for insurers, the paper attempts to convey the necessity of a thorough insurability assessment if an insurer wishes to enter or increase business for a particular risk. Based on examples and information from insurance practice and principles, the paper attempts to show those components of agricultural insurance that have a particular effect on its profitability and therefore present important financial implications for insurers and governments.

 

Year of publication: 1994  
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Agricultural insurance in developing countries
N/A
UNCTAD
153
N/A
The study focuses on the possibilities for increasing insurance awareness in developing countries and in particular for extending insurance cover to productive entities in the traditional sector, with particular reference to agricultural production, by devising appropriate insurance covers and taking into account the work done in other organisations.
 
Chapter 1 provides an introduction to risk and risk management in agriculture differentiated by the category of agricultural activity (traditional or subsistence agriculture, semi-commercial and emerging sector, commercial farming sector, specialised production systems). Chapter 2 then covers all types of crop insurance, followed by general observations in this sector. Chapter 3 discusses livestock insurance (incl. general observations) followed by chapters on poultry insurance (4) and aquaculture insurance (5). Chapter 6 provides an overview of other insurance businesses in the agriculture sector (e.g. transport, storage, equipment, liability). The paper closes by formulating recommendations for developing insurance markets in rural areas (Chapter 7), for the organisational structure of agricultural insurance (Chapter 8) and for reinsurance opportunities (Chapter 9). Concluding observations round off the paper.
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Issues of agricultural insurance in developing countries
N/A
UNCTAD
27
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The document addresses the issues facing the introduction and expansion of different types of agricultural insurance in developing countries. It also discusses the possible economic benefits to be gained by linking agricultural insurance to rural credit schemes. The report places emphasis not only on the contribution that agricultural insurance might make to an expansion of insurance markets in developing countries but also underscores the support it can provide for agricultural development.
 
The first chapter notes that, in developing countries, insurance is largely absent from rural areas. Chapter 2 considers the selection of a country’s agricultural sub-sectors where insurance can be beneficial and viable. Chapter 3 looks at the types of insurance cover appropriate for the different agricultural sectors. Chapter 4 suggests that insurers build up partnerships with other providers of services to rural areas. Chapter 5 highlights the importance of agricultural insurance in protecting both the farmers and the lenders in agricultural credit schemes. Chapter 6 examines the benefits for the insurance industry in developing countries of expanding rural and agricultural insurance. Finally, Chapter 7 highlights some of the long-term development benefits of agricultural insurance.
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Agricultural insurance in Latin America: Where are we?
Wenner, Mark; Arias, Die
Inter-American Development Bank
19
http://www.microfinancegateway.com/redirect.php?mode=link&id=33252 
http://www.microfinancegateway.com/content/article/detail/33252 

 

Year of publication: 1993  
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Abstract:
Wealth, Weather Risk and Composition and Profitability of Agricultural Investments
Rosenzweig, Mark; Binswanger, Hans
Economic Journal
48
> PDF (1.9 MB)

This paper utilizes panel data from rural India to examine how the composition of asset holdings varies across farmers with different levels of total wealth and across farmers facing different degrees of weather risk. In particular, the riskiness of farmers' asset portfolios are measured in terms of their sensitivity to weather variation and a test is developed and implemented of risk aversion based on the association between the average returns to individual production assets and their sensitivity to weather variability. How the responsiveness of portfolio riskiness and farm profitability to the influence of exogenous weather risk varies with wealth is also estimated.

 

Year of publication: 1992  
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The Appropriate Role Agricultural Insurance in Developing Countries
Hazell, Peter
Journal of International Development
14
N/A
Multiple-risk crop insurance programmes have proven expensive to governments but have not lived up to their expectations. Many agricultural risks cannot be insured on a financially sound basis, but there is scope for increased insurance of farm assets, of the life and health of rural people, and of some specific perils that affect crop and livestock yields. Such insurance could be efficiently provided by the private sector if governments were to remove some of the important constraints impinging on commercial insurers. The greatest challenge is to find ways of insuring low-income rural households against natural hazards on a financially sound basis. Simple lottery schemes that provide insurance against catastrophic weather events (e.g. drought or flood) recorded at regional weather stations might prove effective.

 

Year of publication: unknown  
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Abstract:
Using Index-based Risk Transfer Productsto Facilitate Micro Lending in Peru and Vietnam
Skees, Jerry;  Hartell, Jason; Goes, Anne
N/A
11
PDF (854 KB)N/A
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New approaches to public-private crop yield insurance
Skees, Jerry; Hazell, Peter; Miranda, Mario
World Bank
21
http://www.itf-commrisk.org/documents/pubprivyieldins.pdf 
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Reducing financial vulnerability to natural disasters in the agricultural sector in Mexico
Saldaña-Zorrilla, Sergio Omar
N/A
24
http://www.proventionconsortium.org/themes/default/pdfs/AG/096MEX.pdf
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Abstract:
Weather indexes for developing countries
Skees, Jerry R.; Barnett, Barry; Varangis, Panos
N/A
16
http://www.globalagrisk.com/pubs/Weather%20Indexes%20for%20Developing%20Countries.pdf
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