The feasibility of Picture-Based insurance (PBI): Smartphone pictures for affordable crop insurance
Smallholder farmers are increasingly exposed to weather extremes but lack access to affordable insurance products to protect their livelihoods from catastrophic crop damage. This paper analyzes the feasibility of Picture-Based Insurance (PBI) as a tool to improve the quality and affordability of cro...
| Main Authors: | , , |
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| Format: | Artículo preliminar |
| Language: | Inglés |
| Published: |
International Food Policy Research Institute
2019
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/145897 |
| _version_ | 1855541162156228608 |
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| author | Ceballos, Francisco Kramer, Berber Robles, Miguel |
| author_browse | Ceballos, Francisco Kramer, Berber Robles, Miguel |
| author_facet | Ceballos, Francisco Kramer, Berber Robles, Miguel |
| author_sort | Ceballos, Francisco |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Smallholder farmers are increasingly exposed to weather extremes but lack access to affordable insurance products to protect their livelihoods from catastrophic crop damage. This paper analyzes the feasibility of Picture-Based Insurance (PBI) as a tool to improve the quality and affordability of crop insurance. Under PBI, insurance claims are verified using a time-lapse of pictures from insured plots, both pre- and post-damage, taken by farmers themselves using regular smartphone cameras. PBI aims at minimizing asymmetric information and costs of claims verification compared to indemnity insurance, while reducing basis risk and improving trust, tangibility, and understanding compared to index-based insurance. A pilot implementation in the rice-wheat belt of India speaks to PBI being a feasible and valuable complement to existing insurance products. Damage is visible from smartphone pictures, farmers can take pictures of sufficient quality for loss assessment, and PBI helps reduce severe downside basis risk at minimal cost. |
| format | Artículo preliminar |
| id | CGSpace145897 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2019 |
| publishDateRange | 2019 |
| publishDateSort | 2019 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1458972025-11-06T07:23:55Z The feasibility of Picture-Based insurance (PBI): Smartphone pictures for affordable crop insurance Ceballos, Francisco Kramer, Berber Robles, Miguel insurance mobile phones technology capacity development smallholders crop insurance information and communication technologies risk finance photography Smallholder farmers are increasingly exposed to weather extremes but lack access to affordable insurance products to protect their livelihoods from catastrophic crop damage. This paper analyzes the feasibility of Picture-Based Insurance (PBI) as a tool to improve the quality and affordability of crop insurance. Under PBI, insurance claims are verified using a time-lapse of pictures from insured plots, both pre- and post-damage, taken by farmers themselves using regular smartphone cameras. PBI aims at minimizing asymmetric information and costs of claims verification compared to indemnity insurance, while reducing basis risk and improving trust, tangibility, and understanding compared to index-based insurance. A pilot implementation in the rice-wheat belt of India speaks to PBI being a feasible and valuable complement to existing insurance products. Damage is visible from smartphone pictures, farmers can take pictures of sufficient quality for loss assessment, and PBI helps reduce severe downside basis risk at minimal cost. 2019-01-01 2024-06-21T09:05:18Z 2024-06-21T09:05:18Z Working Paper https://hdl.handle.net/10568/145897 en https://hdl.handle.net/10568/148110 https://hdl.handle.net/10568/148111 https://hdl.handle.net/10568/145739 https://doi.org/10.1016/j.agrformet.2018.11.002 https://doi.org/10.1016/j.deveng.2019.100042 https://doi.org/10.1111/1477-9552.12403 https://doi.org/10.22004/ag.econ.275926 https://doi.org/10.2499/p15738coll2.134239 Open Access application/pdf International Food Policy Research Institute Ceballos, Francisco; Kramer, Berber; and Robles, Miguel. 2018. The feasibility of Picture-Based insurance (PBI): Smartphone pictures for affordable crop insurance. IFPRI Discussion Paper 1788. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/145897 |
| spellingShingle | insurance mobile phones technology capacity development smallholders crop insurance information and communication technologies risk finance photography Ceballos, Francisco Kramer, Berber Robles, Miguel The feasibility of Picture-Based insurance (PBI): Smartphone pictures for affordable crop insurance |
| title | The feasibility of Picture-Based insurance (PBI): Smartphone pictures for affordable crop insurance |
| title_full | The feasibility of Picture-Based insurance (PBI): Smartphone pictures for affordable crop insurance |
| title_fullStr | The feasibility of Picture-Based insurance (PBI): Smartphone pictures for affordable crop insurance |
| title_full_unstemmed | The feasibility of Picture-Based insurance (PBI): Smartphone pictures for affordable crop insurance |
| title_short | The feasibility of Picture-Based insurance (PBI): Smartphone pictures for affordable crop insurance |
| title_sort | feasibility of picture based insurance pbi smartphone pictures for affordable crop insurance |
| topic | insurance mobile phones technology capacity development smallholders crop insurance information and communication technologies risk finance photography |
| url | https://hdl.handle.net/10568/145897 |
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