Statistical Analysis of Rainfall Insurance Payouts in Southern India

• Tác giả: Robert Townsend
• Ngôn ngữ: eng
• Ký hiệu phân loại: 915.48 Geography of and travel in Asia
• Thông tin xuất bản: World Bank, Washington, DC, 2012
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 310126
• Chủ đề: 1. ADVERSE SELECTION; 2. ADVERSE SELECTION PROBLEMS; 3. BALANCE SHEET; 4. BUDGETING; 5. BUSINESS SCHOOL

Tóm tắt

 Using 40 years of historical rainfall data, this paper estimates a distribution for payouts on rainfall insurance policies offered to farmers in the State of Andhra Pradesh, India, in 2006. The authors find that the contracts primarily protect households against extreme tail events
  half the expected value of indemnities paid by the insurance are generated by only 2 percent of rainfall realizations. Contract payouts are significantly correlated cross-sectionally, and also inversely associated with real GDP growth. The paper discusses the implications of these findings for the potential benefits of insurance to households, the risks facing a financial institution underwriting rainfall insurance contracts, and pricing.