Economics of Index-based Flood Insurance (IBFI): scenario analysis and stakeholder perspectives from South Asia

The International Water Management Institute (IWMI) has recently developed an innovative Index-based Flood Insurance (IBFI) product to facilitate the scaling of flood insurance particularly in vulnerable economies, to provide risk cover to poor farmers against crop losses that occur due to floods. W...

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Autores principales: Malik, Ravinder Paul Singh, Amarnath, Giriraj
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Water Management Institute 2021
Materias:
Acceso en línea:https://hdl.handle.net/10568/115920
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author Malik, Ravinder Paul Singh
Amarnath, Giriraj
author_browse Amarnath, Giriraj
Malik, Ravinder Paul Singh
author_facet Malik, Ravinder Paul Singh
Amarnath, Giriraj
author_sort Malik, Ravinder Paul Singh
collection Repository of Agricultural Research Outputs (CGSpace)
description The International Water Management Institute (IWMI) has recently developed an innovative Index-based Flood Insurance (IBFI) product to facilitate the scaling of flood insurance particularly in vulnerable economies, to provide risk cover to poor farmers against crop losses that occur due to floods. While the product developed is technically very sound, the economics of such an intervention is important to ensure the large-scale acceptance and adoption of the product by different stakeholders and for its sustenance in the long term. This paper attempts at conducting an ex ante assessment of the economics of IBFI from the perspectives of the three main stakeholders: farmers, the insurance company and the government. The paper discusses the methodological challenges and data issues encountered in undertaking an economic analysis of such a product. The issues and processes involved have been empirically demonstrated using a theoretical case study based on a synthesis of information drawn from a host of sources and certain assumptions. Field-based data are now being collected and analyzed from the locations where IBFI has recently been piloted by IWMI. This will help in further refining the process of economic evaluation and identifying the experiences of different stakeholders.
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spelling CGSpace1159202025-11-07T07:59:00Z Economics of Index-based Flood Insurance (IBFI): scenario analysis and stakeholder perspectives from South Asia Malik, Ravinder Paul Singh Amarnath, Giriraj flooding agricultural insurance crop insurance economic analysis stakeholders disaster risk management farmers state intervention flood damage crop losses compensation subsidies insurance premiums cost benefit analysis economic viability sustainability villages remote sensing datasets models developing countries case studies The International Water Management Institute (IWMI) has recently developed an innovative Index-based Flood Insurance (IBFI) product to facilitate the scaling of flood insurance particularly in vulnerable economies, to provide risk cover to poor farmers against crop losses that occur due to floods. While the product developed is technically very sound, the economics of such an intervention is important to ensure the large-scale acceptance and adoption of the product by different stakeholders and for its sustenance in the long term. This paper attempts at conducting an ex ante assessment of the economics of IBFI from the perspectives of the three main stakeholders: farmers, the insurance company and the government. The paper discusses the methodological challenges and data issues encountered in undertaking an economic analysis of such a product. The issues and processes involved have been empirically demonstrated using a theoretical case study based on a synthesis of information drawn from a host of sources and certain assumptions. Field-based data are now being collected and analyzed from the locations where IBFI has recently been piloted by IWMI. This will help in further refining the process of economic evaluation and identifying the experiences of different stakeholders. 2021-11-09 2021-11-09T15:17:39Z 2021-11-09T15:17:39Z Working Paper https://hdl.handle.net/10568/115920 en Open Access application/pdf International Water Management Institute Malik, Ravinder Paul Singh; Amarnath, Giriraj. 2021. Economics of Index-based Flood Insurance (IBFI): scenario analysis and stakeholder perspectives from South Asia. Colombo, Sri Lanka: International Water Management Institute (IWMI). 34p. (IWMI Working Paper 199) [doi: https://doi.org/10.5337/2021.228]
spellingShingle flooding
agricultural insurance
crop insurance
economic analysis
stakeholders
disaster risk management
farmers
state intervention
flood damage
crop losses
compensation
subsidies
insurance premiums
cost benefit analysis
economic viability
sustainability
villages
remote sensing
datasets
models
developing countries
case studies
Malik, Ravinder Paul Singh
Amarnath, Giriraj
Economics of Index-based Flood Insurance (IBFI): scenario analysis and stakeholder perspectives from South Asia
title Economics of Index-based Flood Insurance (IBFI): scenario analysis and stakeholder perspectives from South Asia
title_full Economics of Index-based Flood Insurance (IBFI): scenario analysis and stakeholder perspectives from South Asia
title_fullStr Economics of Index-based Flood Insurance (IBFI): scenario analysis and stakeholder perspectives from South Asia
title_full_unstemmed Economics of Index-based Flood Insurance (IBFI): scenario analysis and stakeholder perspectives from South Asia
title_short Economics of Index-based Flood Insurance (IBFI): scenario analysis and stakeholder perspectives from South Asia
title_sort economics of index based flood insurance ibfi scenario analysis and stakeholder perspectives from south asia
topic flooding
agricultural insurance
crop insurance
economic analysis
stakeholders
disaster risk management
farmers
state intervention
flood damage
crop losses
compensation
subsidies
insurance premiums
cost benefit analysis
economic viability
sustainability
villages
remote sensing
datasets
models
developing countries
case studies
url https://hdl.handle.net/10568/115920
work_keys_str_mv AT malikravinderpaulsingh economicsofindexbasedfloodinsuranceibfiscenarioanalysisandstakeholderperspectivesfromsouthasia
AT amarnathgiriraj economicsofindexbasedfloodinsuranceibfiscenarioanalysisandstakeholderperspectivesfromsouthasia