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...

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Main Authors:	Clarke, Daniel J., Mahul, Olivier, Verma, Niraj
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	ACCIDENT ACTUARIES ADMINISTRATIVE COSTS ADMINISTRATIVE EXPENSES ADVERSE SELECTION AGGREGATE COST AGRICULTURAL INSURANCE AMOUNT OF RISK APPLICATIONS BUDGETING CAPITAL MARKET CLAIM CLAIM PAYMENT CLAIM PAYMENTS CONFIDENTIALITY COST OF CAPITAL COVERAGE CREDIBILITY CROP INSURANCE CROP INSURANCE SCHEME DEGREE OF TRANSPARENCY DEVELOPING COUNTRIES DEVELOPING COUNTRY DISASTER DISASTER REDUCTION DISASTER RISK DROUGHTS EMERGING ECONOMIES EXTREME EVENTS FARMER FARMERS FINANCIAL INSTITUTIONS FINANCIAL SECTOR GOVERNMENT SUBSIDIES GOVERNMENT SUBSIDY GRACE PERIOD HOLDING INCOME INDEMNITY INSURANCE COMPANY INSURANCE CONTRACT INSURANCE POLICY INSURANCE PRODUCT INSURANCE PRODUCTS INSURANCE PROGRAM INSURANCE PROGRAMS INSURER INSURERS INTERNATIONAL BANK INTERNATIONAL BEST PRACTICE JUDGE JUDGMENT LANDSLIDES LIABILITY MARKET PRACTICE MIDDLE-INCOME COUNTRIES MORAL HAZARD OPPORTUNITY COST POLITICAL ECONOMY PORTFOLIO PORTFOLIOS PREMIUMS PRIVATE INSURANCE PRIVATE INSURANCE COMPANIES PRIVATE REINSURANCE PRIVATE SECTOR DEVELOPMENT PROFIT MARGIN PROGRAMS RATES REGULATORY REGIMES REINSURANCE REINSURANCE MARKETS REINSURERS RESERVES RISK CAPITAL RISK MANAGEMENT RISK SHARING RISK TRANSFER SETTLEMENT SETTLEMENT OF CLAIMS SOLVENCY SOLVENT TECHNICAL ASSISTANCE TECHNOLOGICAL CHANGES
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

id	okr-10986-3271
recordtype	oai_dc
spelling	okr-10986-32712021-04-23T14:02:08Z Index Based Crop Insurance Product Design and Ratemaking : The Case of Modified NAIS in India Clarke, Daniel J. Mahul, Olivier Verma, Niraj ACCIDENT ACTUARIES ADMINISTRATIVE COSTS ADMINISTRATIVE EXPENSES ADVERSE SELECTION AGGREGATE COST AGRICULTURAL INSURANCE AMOUNT OF RISK APPLICATIONS BUDGETING CAPITAL MARKET CLAIM CLAIM PAYMENT CLAIM PAYMENTS CONFIDENTIALITY COST OF CAPITAL COVERAGE CREDIBILITY CROP INSURANCE CROP INSURANCE SCHEME DEGREE OF TRANSPARENCY DEVELOPING COUNTRIES DEVELOPING COUNTRY DISASTER DISASTER REDUCTION DISASTER RISK DROUGHTS EMERGING ECONOMIES EXTREME EVENTS FARMER FARMERS FINANCIAL INSTITUTIONS FINANCIAL SECTOR GOVERNMENT SUBSIDIES GOVERNMENT SUBSIDY GRACE PERIOD HOLDING INCOME INDEMNITY INSURANCE COMPANY INSURANCE CONTRACT INSURANCE POLICY INSURANCE PRODUCT INSURANCE PRODUCTS INSURANCE PROGRAM INSURANCE PROGRAMS INSURER INSURERS INTERNATIONAL BANK INTERNATIONAL BEST PRACTICE JUDGE JUDGMENT LANDSLIDES LIABILITY MARKET PRACTICE MIDDLE-INCOME COUNTRIES MORAL HAZARD OPPORTUNITY COST POLITICAL ECONOMY PORTFOLIO PORTFOLIOS PREMIUMS PRIVATE INSURANCE PRIVATE INSURANCE COMPANIES PRIVATE REINSURANCE PRIVATE SECTOR DEVELOPMENT PROFIT MARGIN PROGRAMS RATES REGULATORY REGIMES REINSURANCE REINSURANCE MARKETS REINSURERS RESERVES RISK CAPITAL RISK MANAGEMENT RISK SHARING RISK TRANSFER SETTLEMENT SETTLEMENT OF CLAIMS SOLVENCY SOLVENT TECHNICAL ASSISTANCE TECHNOLOGICAL CHANGES 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. 2012-03-19T17:29:29Z 2012-03-19T17:29:29Z 2012-03-01 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 English Policy Research working paper ; no. WPS 5986 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper South Asia South Asia South Asia Asia India
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ACCIDENT ACTUARIES ADMINISTRATIVE COSTS ADMINISTRATIVE EXPENSES ADVERSE SELECTION AGGREGATE COST AGRICULTURAL INSURANCE AMOUNT OF RISK APPLICATIONS BUDGETING CAPITAL MARKET CLAIM CLAIM PAYMENT CLAIM PAYMENTS CONFIDENTIALITY COST OF CAPITAL COVERAGE CREDIBILITY CROP INSURANCE CROP INSURANCE SCHEME DEGREE OF TRANSPARENCY DEVELOPING COUNTRIES DEVELOPING COUNTRY DISASTER DISASTER REDUCTION DISASTER RISK DROUGHTS EMERGING ECONOMIES EXTREME EVENTS FARMER FARMERS FINANCIAL INSTITUTIONS FINANCIAL SECTOR GOVERNMENT SUBSIDIES GOVERNMENT SUBSIDY GRACE PERIOD HOLDING INCOME INDEMNITY INSURANCE COMPANY INSURANCE CONTRACT INSURANCE POLICY INSURANCE PRODUCT INSURANCE PRODUCTS INSURANCE PROGRAM INSURANCE PROGRAMS INSURER INSURERS INTERNATIONAL BANK INTERNATIONAL BEST PRACTICE JUDGE JUDGMENT LANDSLIDES LIABILITY MARKET PRACTICE MIDDLE-INCOME COUNTRIES MORAL HAZARD OPPORTUNITY COST POLITICAL ECONOMY PORTFOLIO PORTFOLIOS PREMIUMS PRIVATE INSURANCE PRIVATE INSURANCE COMPANIES PRIVATE REINSURANCE PRIVATE SECTOR DEVELOPMENT PROFIT MARGIN PROGRAMS RATES REGULATORY REGIMES REINSURANCE REINSURANCE MARKETS REINSURERS RESERVES RISK CAPITAL RISK MANAGEMENT RISK SHARING RISK TRANSFER SETTLEMENT SETTLEMENT OF CLAIMS SOLVENCY SOLVENT TECHNICAL ASSISTANCE TECHNOLOGICAL CHANGES
spellingShingle	ACCIDENT ACTUARIES ADMINISTRATIVE COSTS ADMINISTRATIVE EXPENSES ADVERSE SELECTION AGGREGATE COST AGRICULTURAL INSURANCE AMOUNT OF RISK APPLICATIONS BUDGETING CAPITAL MARKET CLAIM CLAIM PAYMENT CLAIM PAYMENTS CONFIDENTIALITY COST OF CAPITAL COVERAGE CREDIBILITY CROP INSURANCE CROP INSURANCE SCHEME DEGREE OF TRANSPARENCY DEVELOPING COUNTRIES DEVELOPING COUNTRY DISASTER DISASTER REDUCTION DISASTER RISK DROUGHTS EMERGING ECONOMIES EXTREME EVENTS FARMER FARMERS FINANCIAL INSTITUTIONS FINANCIAL SECTOR GOVERNMENT SUBSIDIES GOVERNMENT SUBSIDY GRACE PERIOD HOLDING INCOME INDEMNITY INSURANCE COMPANY INSURANCE CONTRACT INSURANCE POLICY INSURANCE PRODUCT INSURANCE PRODUCTS INSURANCE PROGRAM INSURANCE PROGRAMS INSURER INSURERS INTERNATIONAL BANK INTERNATIONAL BEST PRACTICE JUDGE JUDGMENT LANDSLIDES LIABILITY MARKET PRACTICE MIDDLE-INCOME COUNTRIES MORAL HAZARD OPPORTUNITY COST POLITICAL ECONOMY PORTFOLIO PORTFOLIOS PREMIUMS PRIVATE INSURANCE PRIVATE INSURANCE COMPANIES PRIVATE REINSURANCE PRIVATE SECTOR DEVELOPMENT PROFIT MARGIN PROGRAMS RATES REGULATORY REGIMES REINSURANCE REINSURANCE MARKETS REINSURERS RESERVES RISK CAPITAL RISK MANAGEMENT RISK SHARING RISK TRANSFER SETTLEMENT SETTLEMENT OF CLAIMS SOLVENCY SOLVENT TECHNICAL ASSISTANCE TECHNOLOGICAL CHANGES Clarke, Daniel J. Mahul, Olivier Verma, Niraj Index Based Crop Insurance Product Design and Ratemaking : The Case of Modified NAIS in India
geographic_facet	South Asia South Asia South Asia Asia India
relation	Policy Research working paper ; no. WPS 5986
description	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.
format	Publications & Research :: Policy Research Working Paper
author	Clarke, Daniel J. Mahul, Olivier Verma, Niraj
author_facet	Clarke, Daniel J. Mahul, Olivier Verma, Niraj
author_sort	Clarke, Daniel J.
title	Index Based Crop Insurance Product Design and Ratemaking : The Case of Modified NAIS in India
title_short	Index Based Crop Insurance Product Design and Ratemaking : The Case of Modified NAIS in India
title_full	Index Based Crop Insurance Product Design and Ratemaking : The Case of Modified NAIS in India
title_fullStr	Index Based Crop Insurance Product Design and Ratemaking : The Case of Modified NAIS in India
title_full_unstemmed	Index Based Crop Insurance Product Design and Ratemaking : The Case of Modified NAIS in India
title_sort	index based crop insurance product design and ratemaking : the case of modified nais in india
publishDate	2012
url	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
_version_	1764386714353139712

Index Based Crop Insurance Product Design and Ratemaking : The Case of Modified NAIS in India

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