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 for catastrophic crop damage. This paper analyzes the feasibility of Picture-Based Insurance (PBI) as a low-cost tool to improve coverage. PBI verifies insurance claims using smartphone...
| Autores principales: | , , |
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| Formato: | Journal Article |
| Lenguaje: | Inglés |
| Publicado: |
Elsevier
2019
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/145898 |
| _version_ | 1855540990800035840 |
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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 for catastrophic crop damage. This paper analyzes the feasibility of Picture-Based Insurance (PBI) as a low-cost tool to improve coverage. PBI verifies insurance claims using smartphone pictures of insured plots, taken by farmers themselves, to minimize asymmetric information and costs of claims verification, while reducing basis risk compared to index-based insurance. A pilot implementation in the rice-wheat belt of India speaks to PBI being a feasible and valuable innovation to reduce downside basis risk in index insurance: nearly two-thirds of trained farmers took at least four pictures (roughly one per growth stage), which was considered sufficient for loss assessment; severe damage was visible from smartphone pictures in 71 percent of affected sites; and this was a significant improvement over alternative index-based products, which identified severe damage in at most 34 percent of affected sites. |
| format | Journal Article |
| id | CGSpace145898 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2019 |
| publishDateRange | 2019 |
| publishDateSort | 2019 |
| publisher | Elsevier |
| publisherStr | Elsevier |
| record_format | dspace |
| spelling | CGSpace1458982025-02-24T06:45:49Z The feasibility of Picture-Based Insurance (PBI): Smartphone pictures for affordable crop insurance Ceballos, Francisco Kramer, Berber Robles, Miguel innovation insurance technology capacity development crop insurance mobile equipment risk Smallholder farmers are increasingly exposed to weather extremes but lack access to affordable insurance products for catastrophic crop damage. This paper analyzes the feasibility of Picture-Based Insurance (PBI) as a low-cost tool to improve coverage. PBI verifies insurance claims using smartphone pictures of insured plots, taken by farmers themselves, to minimize asymmetric information and costs of claims verification, while reducing basis risk compared to index-based insurance. A pilot implementation in the rice-wheat belt of India speaks to PBI being a feasible and valuable innovation to reduce downside basis risk in index insurance: nearly two-thirds of trained farmers took at least four pictures (roughly one per growth stage), which was considered sufficient for loss assessment; severe damage was visible from smartphone pictures in 71 percent of affected sites; and this was a significant improvement over alternative index-based products, which identified severe damage in at most 34 percent of affected sites. 2019-06-05 2024-06-21T09:05:18Z 2024-06-21T09:05:18Z Journal Article https://hdl.handle.net/10568/145898 en https://hdl.handle.net/10568/145897 https://doi.org/10.2499/p15738coll2.134751 https://doi.org/10.2499/p15738coll2.134046 https://doi.org/10.2499/p15738coll2.134917 https://doi.org/10.2499/p15738coll2.134941 https://doi.org/10.2499/p15738coll2.134958 https://hdl.handle.net/10568/148110 https://doi.org/10.2499/p15738coll2.133534 https://doi.org/10.2499/p15738coll2.134938 https://doi.org/10.22004/ag.econ.277141 https://doi.org/10.1088/1748-9326/ab5ebb https://doi.org/10.3390/rs13050924 https://doi.org/10.23846/TW13FE11 Open Access Elsevier Ceballos, Francisco; Kramer, Berber; and Robles, Miguel. 2019. The feasibility of Picture-Based Insurance (PBI): Smartphone pictures for affordable crop insurance. Development Engineering 4: 100042. https://doi.org/10.1016/j.deveng.2019.100042 |
| spellingShingle | innovation insurance technology capacity development crop insurance mobile equipment risk 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 | innovation insurance technology capacity development crop insurance mobile equipment risk |
| url | https://hdl.handle.net/10568/145898 |
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