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Weather Index Insurance for Agriculture and Rural Areas in Lower Income Countries

Published by:
Online Location
https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1467-8276.2007.01091.x
Publication date
01/12/2007
Number of Pages
19
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
Barry J. Barnett, Olivier Mahul
Organization
The World Bank

This session focuses on innovations in risk transfer for natural disasters in lower income countries. In particular, the focus is on weather index insurance products that can be used to transfer various weather-related risks. This paper discusses the linkage between weather risk and poverty, provides background information on weather index insurance products, describes requirements for the implementation of weather index insurance and possible roles for governments, donors, and international financial institutions in facilitating implementation, and briefly reviews recent efforts to provide weather index insurance products in rural areas of some middle and lower income countries. The other papers in this session build on this background material by providing detailed examples from India, Peru, Vietnam, and Kenya.