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Agricultural insurances based on meteorological indices: realizations, methods and research challenges

  • Antoine Leblois

    ()

    (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - Ecole des Ponts ParisTech - AgroParisTech)

  • Philippe Quirion

    ()

    (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - Ecole des Ponts ParisTech - AgroParisTech, LMD - Laboratoire de Météorologie Dynamique - CNRS : UMR8539 - INSU - Université Pierre et Marie Curie [UPMC] - Paris VI - Polytechnique - X - Ecole normale supérieure de Paris - ENS Paris)

In many low-income countries, agriculture is mostly rainfed and crop yield depends highly on climatic factors. Furthermore, farmers have little access to traditional crop insurance, which suffers from high information asymmetry and transaction costs. Insurances based on meteorological indices could fill this gap since they do not face such drawbacks. However, a full-scale implementation has been slow so far. In this article, the most advanced projects that have taken place in developing countries using these types of crop insurances are described. Following this, the methodology that has been used to design such projects in order to choose the meteorological index, the indemnity schedule and the insurance premium, is described. Finally the main research issues are discussed. In particular, more research is needed on implementation, assessment of benefits, how to deal with climate change, spatial variability of weather and interactions with other hedging methods.

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Paper provided by HAL in its series Post-Print with number hal-00656778.

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Date of creation: 2013
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Publication status: Published, Meteorological Applications, 2013, 20, 1, 1-9
Handle: RePEc:hal:journl:hal-00656778
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