Designing index based livestock insurance for managing asset risk in northern Kenya
This article describes a novel index-based livestock insurance (IBLI) product piloted among pastoralists in Northern Kenya, where insurance markets are effectively absent and uninsured risk exposure is a main cause of poverty. We describe the methodology used to design the contract and its underlyin...
| Main Authors: | , , , |
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| Format: | Journal Article |
| Language: | Inglés |
| Published: |
Wiley
2013
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/17235 |
| _version_ | 1855523279893168128 |
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| author | Chantarat, S. Mude, Andrew G. Barrett, Christopher B. Carter, M.R. |
| author_browse | Barrett, Christopher B. Carter, M.R. Chantarat, S. Mude, Andrew G. |
| author_facet | Chantarat, S. Mude, Andrew G. Barrett, Christopher B. Carter, M.R. |
| author_sort | Chantarat, S. |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | This article describes a novel index-based livestock insurance (IBLI) product piloted among pastoralists in Northern Kenya, where insurance markets are effectively absent and uninsured risk exposure is a main cause of poverty. We describe the methodology used to design the contract and its underlying index of predicted area-average livestock mortality, established statistically using longitudinal observations of household-level herd mortality fit to remotely sensed vegetation data. Household-level performance analysis based on simulations finds that IBLI removes 25–40 percent of total livestock mortality risk. We describe the contract pricing and the risk exposures of the underwriter to establish IBLI's reinsurability on international markets. |
| format | Journal Article |
| id | CGSpace17235 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2013 |
| publishDateRange | 2013 |
| publishDateSort | 2013 |
| publisher | Wiley |
| publisherStr | Wiley |
| record_format | dspace |
| spelling | CGSpace172352025-06-13T04:20:13Z Designing index based livestock insurance for managing asset risk in northern Kenya Chantarat, S. Mude, Andrew G. Barrett, Christopher B. Carter, M.R. livestock mortality pastoralism This article describes a novel index-based livestock insurance (IBLI) product piloted among pastoralists in Northern Kenya, where insurance markets are effectively absent and uninsured risk exposure is a main cause of poverty. We describe the methodology used to design the contract and its underlying index of predicted area-average livestock mortality, established statistically using longitudinal observations of household-level herd mortality fit to remotely sensed vegetation data. Household-level performance analysis based on simulations finds that IBLI removes 25–40 percent of total livestock mortality risk. We describe the contract pricing and the risk exposures of the underwriter to establish IBLI's reinsurability on international markets. 2013-03 2012-05-28T16:54:14Z 2012-05-28T16:54:14Z Journal Article https://hdl.handle.net/10568/17235 en Open Access Wiley Chantarat, S., Mude, A.G., Barrett, C.B. and Carter, M.R. 2013. Designing index based livestock insurance for managing asset risk in northern Kenya. Journal of Risk and Insurance 80(1):205-237. |
| spellingShingle | livestock mortality pastoralism Chantarat, S. Mude, Andrew G. Barrett, Christopher B. Carter, M.R. Designing index based livestock insurance for managing asset risk in northern Kenya |
| title | Designing index based livestock insurance for managing asset risk in northern Kenya |
| title_full | Designing index based livestock insurance for managing asset risk in northern Kenya |
| title_fullStr | Designing index based livestock insurance for managing asset risk in northern Kenya |
| title_full_unstemmed | Designing index based livestock insurance for managing asset risk in northern Kenya |
| title_short | Designing index based livestock insurance for managing asset risk in northern Kenya |
| title_sort | designing index based livestock insurance for managing asset risk in northern kenya |
| topic | livestock mortality pastoralism |
| url | https://hdl.handle.net/10568/17235 |
| work_keys_str_mv | AT chantarats designingindexbasedlivestockinsuranceformanagingassetriskinnorthernkenya AT mudeandrewg designingindexbasedlivestockinsuranceformanagingassetriskinnorthernkenya AT barrettchristopherb designingindexbasedlivestockinsuranceformanagingassetriskinnorthernkenya AT cartermr designingindexbasedlivestockinsuranceformanagingassetriskinnorthernkenya |