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Developing Index-Based Insurance for Agriculture in Developing Countries

Published by:
Online Location
https://sustainabledevelopment.un.org/content/documents/no2.pdf
Publication date
02/03/2007
Number of Pages
8
Language:
English
Type of Publication:
Working Papers & Briefs
Focus Region:
Global
Focus Topic:
Climate / Weather / Environment
Type of Risk:
Weather & Climate related
Type of Risk Managment Option:
Risk transfer
Commodity:
Crops
Author
Erin Bryla-Tressler, Joanna Syroka
Organization
World Bank, United Nations

Index-based insurance products for agriculture represent an attractive alternative for managing weather risk. Pilot programs conducted in several developing countries have proven the feasibility and affordability of such products. This paper presents the main lessons from these pilot programs, and examines the prospects for extension and scaling up of index-based weather insurance products in developing economies to promote sustainable development.