Index Based Crop Insurance Product Design and Ratemaking : The Case of Modified NAIS in India
Designing and rating insurance products requires both science and judgment. In developing and emerging economies, actuarial procedures must be robust and implementable, as well as offering a sufficient degree of transparency and flexibility so as t...
| Main Authors: | , , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120305111024 http://hdl.handle.net/10986/3271 |
| Summary: | Designing and rating insurance products
requires both science and judgment. In developing and
emerging economies, actuarial procedures must be robust and
implementable, as well as offering a sufficient degree of
transparency and flexibility so as to allow expert judgment
to be incorporated. This paper outlines an approach to
designing and rating a portfolio of index insurance products
that uses both temporal and spatial aspects of the data to
increase the efficiency of statistical estimates. The
approach has formed the basis for the design and ratemaking
methodology implemented by the Agriculture Insurance Company
of India for the modified National Agricultural Insurance
Scheme, which was initiated by the Government of India in
late 2010. |
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