Index Insurance : A Viable Solution for Irrigated Farming?

This paper documents the practical experience of deploying index insurance in a tropical country whose agriculture is dependent on dual sources of water: rainfall and irrigation. The paper introduces an innovative hybrid index insurance product bas...

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Main Authors:	Arandara, Rathnija, Gunasekera, Shanuki, Mookerjee, Agrotosh
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2019
Subjects:	AGRICULTURE AGRICULTURAL INSURANCE INDEX INSURANCE IRRIGATED FARMING IRRIGATION RAINFALL INDEX WEATHER EVENTS GLOBAL INDEX INSURANCE FACILITY
Online Access:	http://documents.worldbank.org/curated/en/186891573136575004/Index-Insurance-A-Viable-Solution-for-Irrigated-Farming http://hdl.handle.net/10986/32664

id	okr-10986-32664
recordtype	oai_dc
spelling	okr-10986-326642022-09-20T00:11:11Z Index Insurance : A Viable Solution for Irrigated Farming? Arandara, Rathnija Gunasekera, Shanuki Mookerjee, Agrotosh AGRICULTURE AGRICULTURAL INSURANCE INDEX INSURANCE IRRIGATED FARMING IRRIGATION RAINFALL INDEX WEATHER EVENTS GLOBAL INDEX INSURANCE FACILITY This paper documents the practical experience of deploying index insurance in a tropical country whose agriculture is dependent on dual sources of water: rainfall and irrigation. The paper introduces an innovative hybrid index insurance product based on the authors' experience of piloting the concept. The hybrid product was created to address the higher basis risk of using a single rainfall trigger that ignores the hydrological conditions on the ground. The paper brings forth findings from a live pilot in selected locations -- with varied agro-climatic conditions—in Sri Lanka under the World Bank Group's Global Index Insurance Facility. The findings indicate that the new hybrid product performs better than the single trigger (rainfall-based) index insurance product, thereby reducing the basis risk faced by farmers. The paper also shares some of the practical limitations in deploying the product. 2019-11-21T18:11:11Z 2019-11-21T18:11:11Z 2019-11 Working Paper http://documents.worldbank.org/curated/en/186891573136575004/Index-Insurance-A-Viable-Solution-for-Irrigated-Farming http://hdl.handle.net/10986/32664 English Policy Research Working Paper;No. 9055 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper South Asia Sri Lanka
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	AGRICULTURE AGRICULTURAL INSURANCE INDEX INSURANCE IRRIGATED FARMING IRRIGATION RAINFALL INDEX WEATHER EVENTS GLOBAL INDEX INSURANCE FACILITY
spellingShingle	AGRICULTURE AGRICULTURAL INSURANCE INDEX INSURANCE IRRIGATED FARMING IRRIGATION RAINFALL INDEX WEATHER EVENTS GLOBAL INDEX INSURANCE FACILITY Arandara, Rathnija Gunasekera, Shanuki Mookerjee, Agrotosh Index Insurance : A Viable Solution for Irrigated Farming?
geographic_facet	South Asia Sri Lanka
relation	Policy Research Working Paper;No. 9055
description	This paper documents the practical experience of deploying index insurance in a tropical country whose agriculture is dependent on dual sources of water: rainfall and irrigation. The paper introduces an innovative hybrid index insurance product based on the authors' experience of piloting the concept. The hybrid product was created to address the higher basis risk of using a single rainfall trigger that ignores the hydrological conditions on the ground. The paper brings forth findings from a live pilot in selected locations -- with varied agro-climatic conditions—in Sri Lanka under the World Bank Group's Global Index Insurance Facility. The findings indicate that the new hybrid product performs better than the single trigger (rainfall-based) index insurance product, thereby reducing the basis risk faced by farmers. The paper also shares some of the practical limitations in deploying the product.
format	Working Paper
author	Arandara, Rathnija Gunasekera, Shanuki Mookerjee, Agrotosh
author_facet	Arandara, Rathnija Gunasekera, Shanuki Mookerjee, Agrotosh
author_sort	Arandara, Rathnija
title	Index Insurance : A Viable Solution for Irrigated Farming?
title_short	Index Insurance : A Viable Solution for Irrigated Farming?
title_full	Index Insurance : A Viable Solution for Irrigated Farming?
title_fullStr	Index Insurance : A Viable Solution for Irrigated Farming?
title_full_unstemmed	Index Insurance : A Viable Solution for Irrigated Farming?
title_sort	index insurance : a viable solution for irrigated farming?
publisher	World Bank, Washington, DC
publishDate	2019
url	http://documents.worldbank.org/curated/en/186891573136575004/Index-Insurance-A-Viable-Solution-for-Irrigated-Farming http://hdl.handle.net/10986/32664
_version_	1764477023631179776

Index Insurance : A Viable Solution for Irrigated Farming?

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