Improving index-based drought insurance in varying topography: evaluating basis risk based on perceptions of Nicaraguan hillside farmers
This paper discusses a methodology to model precipitation indices and premium prices for index-based drought insurance for smallholders. Spatial basis risk, which is borne by the insured, is a problem, especially in variable topography. Also, site-specific drought risk needs to be estimated accurate...
| Main Authors: | , , , , |
|---|---|
| Format: | Journal Article |
| Language: | Inglés |
| Published: |
Public Library of Science
2012
|
| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/41975 |
| _version_ | 1855522897585504256 |
|---|---|
| author | Kost, André Läderach, Peter R.D. Myles, Fisher Cook, Simon E. Gómez, Lorena |
| author_browse | Cook, Simon E. Gómez, Lorena Kost, André Läderach, Peter R.D. Myles, Fisher |
| author_facet | Kost, André Läderach, Peter R.D. Myles, Fisher Cook, Simon E. Gómez, Lorena |
| author_sort | Kost, André |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | This paper discusses a methodology to model precipitation indices and premium prices for index-based drought insurance for smallholders. Spatial basis risk, which is borne by the insured, is a problem, especially in variable topography. Also, site-specific drought risk needs to be estimated accurately in order to offer effective insurance cover and ensure financial sustainability of the insurance scheme. We explore farmers' perceptions on drought and spatial climate variability and draw conclusions concerning basis risk with regards to the proposed methodology. There are technically many options to represent natural heterogeneity in index insurance contracts while serving the customer adequately and keeping transaction costs low. |
| format | Journal Article |
| id | CGSpace41975 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2012 |
| publishDateRange | 2012 |
| publishDateSort | 2012 |
| publisher | Public Library of Science |
| publisherStr | Public Library of Science |
| record_format | dspace |
| spelling | CGSpace419752024-05-01T08:16:50Z Improving index-based drought insurance in varying topography: evaluating basis risk based on perceptions of Nicaraguan hillside farmers Kost, André Läderach, Peter R.D. Myles, Fisher Cook, Simon E. Gómez, Lorena agriculture climate drought insurance smallholders This paper discusses a methodology to model precipitation indices and premium prices for index-based drought insurance for smallholders. Spatial basis risk, which is borne by the insured, is a problem, especially in variable topography. Also, site-specific drought risk needs to be estimated accurately in order to offer effective insurance cover and ensure financial sustainability of the insurance scheme. We explore farmers' perceptions on drought and spatial climate variability and draw conclusions concerning basis risk with regards to the proposed methodology. There are technically many options to represent natural heterogeneity in index insurance contracts while serving the customer adequately and keeping transaction costs low. 2012-12-11 2014-08-15T12:13:14Z 2014-08-15T12:13:14Z Journal Article https://hdl.handle.net/10568/41975 en Open Access Public Library of Science Kost A, Läderach P, Myles F, Cook SE, Gómez L. 2012. Improving index-based drought insurance in varying topography: evaluating basis risk based on perceptions of Nicaraguan hillside farmers. PLOS ONE 7(12):e51412. |
| spellingShingle | agriculture climate drought insurance smallholders Kost, André Läderach, Peter R.D. Myles, Fisher Cook, Simon E. Gómez, Lorena Improving index-based drought insurance in varying topography: evaluating basis risk based on perceptions of Nicaraguan hillside farmers |
| title | Improving index-based drought insurance in varying topography: evaluating basis risk based on perceptions of Nicaraguan hillside farmers |
| title_full | Improving index-based drought insurance in varying topography: evaluating basis risk based on perceptions of Nicaraguan hillside farmers |
| title_fullStr | Improving index-based drought insurance in varying topography: evaluating basis risk based on perceptions of Nicaraguan hillside farmers |
| title_full_unstemmed | Improving index-based drought insurance in varying topography: evaluating basis risk based on perceptions of Nicaraguan hillside farmers |
| title_short | Improving index-based drought insurance in varying topography: evaluating basis risk based on perceptions of Nicaraguan hillside farmers |
| title_sort | improving index based drought insurance in varying topography evaluating basis risk based on perceptions of nicaraguan hillside farmers |
| topic | agriculture climate drought insurance smallholders |
| url | https://hdl.handle.net/10568/41975 |
| work_keys_str_mv | AT kostandre improvingindexbaseddroughtinsuranceinvaryingtopographyevaluatingbasisriskbasedonperceptionsofnicaraguanhillsidefarmers AT laderachpeterrd improvingindexbaseddroughtinsuranceinvaryingtopographyevaluatingbasisriskbasedonperceptionsofnicaraguanhillsidefarmers AT mylesfisher improvingindexbaseddroughtinsuranceinvaryingtopographyevaluatingbasisriskbasedonperceptionsofnicaraguanhillsidefarmers AT cooksimone improvingindexbaseddroughtinsuranceinvaryingtopographyevaluatingbasisriskbasedonperceptionsofnicaraguanhillsidefarmers AT gomezlorena improvingindexbaseddroughtinsuranceinvaryingtopographyevaluatingbasisriskbasedonperceptionsofnicaraguanhillsidefarmers |