publication . Preprint . Other literature type . 2015

Mitigation Index Insurance for Developing Countries: Insure the Loss or Insure the Signal?

Li, Yiting; Miranda, Mario J.; Li, Yiting; Miranda, Mario J.;
Open Access
  • Published: 01 Jan 2015
Abstract
Conventional agricultural index insurance indemnifies based on the observed value of a specified variable, such as rainfall, that is correlated with agricultural production losses. Typically, indemnities are paid to the policyholder after the losses have been experienced. This paper explores alternate timing for index insurance payouts. In particular, we explore the potential benefits of what we call “mitigation index insurance” in which the payouts of the insurance contract arrive before losses are incurred, in time to be used to take measures to mitigate, that is, reduce, eventual losses. For mitigation insurance to be of value, two conditions must be met. Fir...
Subjects
free text keywords: Mitigation Index Insurance, Agricultural Finance, Risk and Uncertainty,, Agricultural Finance, Risk and Uncertainty, Mitigation Index Insurance
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publication . Preprint . Other literature type . 2015

Mitigation Index Insurance for Developing Countries: Insure the Loss or Insure the Signal?

Li, Yiting; Miranda, Mario J.; Li, Yiting; Miranda, Mario J.;