Innovations in Agricultural and Natural Disaster Insurance Academic Article uri icon

abstract

  • Recent innovations in financial markets bring about new instruments that can be used to provide insurance for agricultural risks. The advantages of index-based insurance contracts make them an attractive tool for risk transfer. In the case of developing countries, index-based insurance allows government to develop agricultural insurance within the country and to transfer the non-diversifiable component of country‚Äôs risk to the global markets at highly reduced transaction cost. New institutions have to be formed to implement such a scheme, but the simplicity and transparency of index-based contracts makes those changes easier to implement than with traditional insurance.

author list (cited authors)

  • Miranda, M., & Vedenov, D. V.

publication date

  • January 1, 2001 11:11 AM