The insurance market in Uzbekistan is characterized by its heavy focus of risk management on strategic crops like cotton and wheat and the very close coupling of insurance with agricultural loans. The majority of farmers who received a subsidized production credit from the agricultural bank...

There is growing concern that climate change poses a serious threat to the sustainability of the insurance business. Understanding whether climate warming is a cause for an increase in claims and losses, and how this cause-effect relationship will develop in the future, are two significant open...

Rainfall is an important source of covariate shock in developing countries. Insurance against a rainfall index has, therefore, held much promise as a formal insurance product to protect the livelihoods of poor farmers. But how good is rainfall as a measure of covariate shocks? The imperfect...

We provide novel evidence of how an innovative market-based solution using remote-sensing technology can mitigate conflict. Droughts are a major driver of conflict in Africa, particularly between nomadic pastoralists and sedentary farmers, and climate change is predicted to intensify this...

This paper presents a summary of selected policy reports and economic articles about Federal Crop Insurance Program (FCIP) under the 2018 Farm bill. FCIP is part of the farm safety net program and together with farm commodity and disaster assistance programs, they provide risk protection and...

Weather index insurance may help smallholder farmers in the developing world cope with environmental risks and shock-induced poverty traps. Despite this, adoption rates remain low. Basis risk—or the disconnect between observed outcomes and the index itself—is cited as a core contributor,...

Effective agricultural insurance and risk management program rely on accurate crop yield forecasting. In this paper, we propose a novel deep factor model for crop yield forecasting and crop insurance ratemaking. This framework first utilizes a deep autoencoder to extract a latent factor, called...

This paper provides novel evidence on how risk exposure shapes the demand for index-based weather insurance. The focus is on Mongolia, where index insurance is offered as a commercially marketed product to pastoralists threatened by extreme weather events that cause high livestock mortality....