Picture-based insurance: Is it sustainable? Effects on willingness to pay, adverse selection, and moral hazard

This project note hence describes to what extent picture-based crop insurance is viable from an economic point of view, addressing the following questions: (1) Do farmers strategically reduce crop management efforts (that is, does PBI induce moral hazard) and is there evidence of tampering with pict...

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Main Authors: Kramer, Berber, Ceballos, Francisco, Krupoff, Matthew, Toor, Mann S., Mishra, Azad, Karekar, Siddesh, Robles, Miguel
Format: Brief
Language:Inglés
Published: International Food Policy Research Institute 2017
Subjects:
Online Access:https://hdl.handle.net/10568/148111
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author Kramer, Berber
Ceballos, Francisco
Krupoff, Matthew
Toor, Mann S.
Mishra, Azad
Karekar, Siddesh
Robles, Miguel
author_browse Ceballos, Francisco
Karekar, Siddesh
Kramer, Berber
Krupoff, Matthew
Mishra, Azad
Robles, Miguel
Toor, Mann S.
author_facet Kramer, Berber
Ceballos, Francisco
Krupoff, Matthew
Toor, Mann S.
Mishra, Azad
Karekar, Siddesh
Robles, Miguel
author_sort Kramer, Berber
collection Repository of Agricultural Research Outputs (CGSpace)
description This project note hence describes to what extent picture-based crop insurance is viable from an economic point of view, addressing the following questions: (1) Do farmers strategically reduce crop management efforts (that is, does PBI induce moral hazard) and is there evidence of tampering with pictures in order to receive pay-outs when they have PBI coverage? (2) What is farmers’ willingness to pay for PBI compared to willingness to pay for standard weather index-based insurance (WBI)? Is farmers’ demand for PBI strong enough to justify its higher costs? (3) To what extent do farmers se-lectively enroll plots that are more prone to damage? In other words, is PBI prone to adverse selection?
format Brief
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language Inglés
publishDate 2017
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publisherStr International Food Policy Research Institute
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spelling CGSpace1481112025-11-06T06:22:32Z Picture-based insurance: Is it sustainable? Effects on willingness to pay, adverse selection, and moral hazard Kramer, Berber Ceballos, Francisco Krupoff, Matthew Toor, Mann S. Mishra, Azad Karekar, Siddesh Robles, Miguel crops losses agricultural insurance smallholders assessment photography This project note hence describes to what extent picture-based crop insurance is viable from an economic point of view, addressing the following questions: (1) Do farmers strategically reduce crop management efforts (that is, does PBI induce moral hazard) and is there evidence of tampering with pictures in order to receive pay-outs when they have PBI coverage? (2) What is farmers’ willingness to pay for PBI compared to willingness to pay for standard weather index-based insurance (WBI)? Is farmers’ demand for PBI strong enough to justify its higher costs? (3) To what extent do farmers se-lectively enroll plots that are more prone to damage? In other words, is PBI prone to adverse selection? 2017 2024-06-21T09:23:51Z 2024-06-21T09:23:51Z Brief https://hdl.handle.net/10568/148111 en https://doi.org/10.2499/p15738coll2.133534 application/pdf International Food Policy Research Institute Kramer, Berber; Ceballos, Francisco; Krupoff, Matthew; Toor, Mann S.; Mishra, Azad; Karekar, Siddesh; and Robles, Miguel. 2017. Picture-based insurance: Is it sustainable? Effects on willingness to pay, adverse selection, and moral hazard. Project Note 2. Washington, DC: International Food Policy Research Institue (IFPRI). https://hdl.handle.net/10568/148111
spellingShingle crops
losses
agricultural insurance
smallholders
assessment
photography
Kramer, Berber
Ceballos, Francisco
Krupoff, Matthew
Toor, Mann S.
Mishra, Azad
Karekar, Siddesh
Robles, Miguel
Picture-based insurance: Is it sustainable? Effects on willingness to pay, adverse selection, and moral hazard
title Picture-based insurance: Is it sustainable? Effects on willingness to pay, adverse selection, and moral hazard
title_full Picture-based insurance: Is it sustainable? Effects on willingness to pay, adverse selection, and moral hazard
title_fullStr Picture-based insurance: Is it sustainable? Effects on willingness to pay, adverse selection, and moral hazard
title_full_unstemmed Picture-based insurance: Is it sustainable? Effects on willingness to pay, adverse selection, and moral hazard
title_short Picture-based insurance: Is it sustainable? Effects on willingness to pay, adverse selection, and moral hazard
title_sort picture based insurance is it sustainable effects on willingness to pay adverse selection and moral hazard
topic crops
losses
agricultural insurance
smallholders
assessment
photography
url https://hdl.handle.net/10568/148111
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