Index-Based Risk Financing and Development of Natural Disaster Insurance Programs in Developing Asian Countries
This paper explores innovations in index-based risk transfer products (IBRTPs) as a means to address important insurance market imperfections that have precluded the emergence and sustainability of formal insurance markets in developing countries, where uninsured natural disaster risk remains a leading impediment of economic development. Using a combination of disaggregated nationwide weather, remote sensing and household livelihood data commonly available in developing countries, the paper provides analytical framework and empirical illustration on showing design nationwide and scalable IBRTP contracts, to analyse hedging effectiveness and welfare impacts at the micro level, and to explore cost effective risk-financing options. Thai rice production is used in our analysis with the goal to extend the methodology and implications to enhance development of national and regional disaster risk management in Asia.
|Date of creation:||Aug 2013|
|Date of revision:|
|Contact details of provider:|| Postal: The ASEAN Secretariat Mezzanine Floor, 70A Jl.Sisingamangaraja, Jakarta 12110|
Web page: http://www.eria.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- J. David Cummins & David Lalonde & Richard D. Phillips, 2000.
"The Basis Risk of Catastrophic-Loss Index Securities,"
Center for Financial Institutions Working Papers
00-22, Wharton School Center for Financial Institutions, University of Pennsylvania.
- Cummins, J. David & Lalonde, David & Phillips, Richard D., 2004. "The basis risk of catastrophic-loss index securities," Journal of Financial Economics, Elsevier, vol. 71(1), pages 77-111, January.
- Howard Kunreuther & Mark Pauly, 2004. "Neglecting Disaster: Why Don't People Insure Against Large Losses?," Journal of Risk and Uncertainty, Springer, vol. 28(1), pages 5-21, January.
- Sukant K. Misra & Jeannie Nelson, 2003. "Efficient Estimation of Agricultural Time Series Models with Nonnormal Dependent Variables," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 1029-1040.
- Sommarat Chantarat & Christopher B. Barrett & Andrew G. Mude & Calum G. Turvey, 2007. "Using Weather Index Insurance to Improve Drought Response for Famine Prevention," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(5), pages 1262-1268.
- Xavier Giné & Robert Townsend & James Vickery, 2007.
"Statistical Analysis of Rainfall Insurance Payouts in Southern India,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 89(5), pages 1248-1254.
- Gine, Xavier & Townsend, Robert & Vickery, James, 2007. "Statistical analysis of rainfall insurance payouts in southern India," Policy Research Working Paper Series 4426, The World Bank.
- Eugene Gurenko & Rodney Lester & Olivier Mahul & Serap Oguz Gonulal, 2006. "Earthquake Insurance in Turkey : History of the Turkish Catastrophe Insurance Pool," World Bank Publications, The World Bank, number 7142, August.
- Lars Ljungqvist & Thomas J. Sargent, 2004. "Recursive Macroeconomic Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 2, volume 1, number 026212274x.
- Carter, Michael R. & Galarza, Francisco & Boucher, Stephen, 2007. "Underwriting area-based yield insurance to crowd-in credit supply and demand," MPRA Paper 24326, University Library of Munich, Germany.
- Sommarat Chaniarat & Calum G. Turvey & Andrew G. Mude & Christopher B. Barrett, 2008. "Improving humanitarian response to slow-onset disasters using famine-indexed weather derivatives," Agricultural Finance Review, Emerald Group Publishing, vol. 68(1), pages 169-195, September.
- Jerry R. Skees & J. Roy Black & Barry J. Barnett, 1997. "Designing and Rating an Area Yield Crop Insurance Contract," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 430-438.
When requesting a correction, please mention this item's handle: RePEc:era:wpaper:dp-2013-09. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hiroshi Okasaki)
If references are entirely missing, you can add them using this form.