Kapphan, Ines; Calanca, Pierluigi; Holzkaemper, Annelie - In: The Geneva Papers on Risk and Insurance - Issues and … 37 (2012) 2, pp. 286-317
Insurers have relied on historical data to design weather insurance contracts. In light of climate change, we examine the effects of this practice on the hedging effectiveness and profitability of insurance contracts. Using synthetic crop and weather data for today's and future climatic...