Weather insurance as a means of supporting vulnerable agriculture, and impacts of climate change.
2013
Nicola, F. de
In recent years a growing amount of resources has been allocated for the advocacy and promotion of agricultural index insurance projects. Three factors motivated such actions: (i) agricultural production accounts for a large fraction of the economy in these countries, (ii) farmers' output largely depend on weather's realization given the agricultural technologies adopted, and (iii) covariant shocks such as weather variations remain quite uninsured. In this literature review, we report the theoretical and empirical evidence about the need and demand for these insurance products. We first discuss the potential behavioural impact of the provision of insurance. We then focus on the modalities of distributions and consider the economic and behavioural factors that are identified in the literature as constraints to the insurance diffusion.
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