Basis Risk and Low Demand for Weather Index Insurance

“the effect of risk aversion on the demand for life insurance: the case of iranian life insurance market”

abstract: about 60% of total premium of insurance industry is pertained?to life policies in the world; while the life insurance total premium in iran is less than 6% of total premium in insurance industry in 2008 (sigma, no 3/2009). among the reasons that discourage the life insurance industry is the problem of adverse selection. adverse selection theory describes a situation where the inf...

Weather Derivatives in the Presence of Index and Geographical Basis Risk: Hedging Dairy Profit Risk

Weather Derivatives in the Presence of Index and Geographical Basis Risk: Hedging Dairy Profit Risk by

Equity Risk, Conversion Risk, and the Demand for Insurance

The paper studies optimal property insurance in the presence of equity risk and conversion risk. Equity risk is randomness of the value of a property. It tends to raise demand for conventional insurance on the property. In contrast, conversion risk is randomness in the value the property would have if, after severe damage, it were converted to the highest-valued use. It is distinct from equity ...

Contributions of Agricultural Systems Modeling to Weather Index Insurance

Climate exerts a profound influence on the lives of rural populations, particularly the rural poor, who depend on agriculture for livelihood and sustenance, who are unprotected against climate-related diseases, who lack secure access to water and food, and who are vulnerable to hydrometeorological hazard. Climate shocks such as drought and flooding lead not only to loss of life, but also long-t...