This paper anlyzes the dynamic nature of rainfall insurance purchasing decisions, specifically looking at whether and why receiving an insurance payout induces a greater chance of purchasing insurance again the next year. Using customer data from the Indian micro-finance institution BASIX, I find that receiving an insurance payout is associated with a 9-22% increased probability of purchasing i...

 Schemes that make use of ex-ante risk transfer instruments, including indemnity and index-based insurance and insurance-linked securities (e.g. catastrophe bonds, catastrophe swaps, and weather hedges).  Schemes where the public sector, the private sector or both (as public-private partnerships) play a role in their set up and operation.  Schemes that have been implemented (fully operationa...

In the Sudano-Sahelian region, which includes South Niger, the inter-annual variability of the rainy season is high and irrigation is scarce. As a consequence, bad rainy seasons have a massive impact on crop yield and regularly entail food crises. Traditional insurances based on crop damage assessment are not available because of asymmetric information and high transaction costs compared to the...

This study explored how temporal context influences recognition. In an ERP experiment, subjects were asked to judge whether pictures, presented one at a time, had been seen since the previous appearance of a special reset screen. The reset screen separated sequences of successively presented stimuli and signaled a change in temporal context. A "new-repeat" picture was one that had been seen bef...

Climate change will affect the insurance industry. We develop a Bayesian hierarchical statistical approach to explain and predict insurance losses due to weather events at a local geographic scale. The number of weather-related insurance claims is modelled by combining generalized linear models with spatially smoothed variable selection. Using Gibbs sampling and reversible jump Markov chain Mon...

Agro-meteorological index insurance can transfer the risks in the agricultural production, reduce the farmers' economic losses, and promote a sustainable development of agricultural production. However, traditional agricultural insurance with a single rate has the problems of the presence of adverse selection, the difficulty of determining premium rates and assessing the claims. As a new agricu...

Forecasting temperature in time and space is an important precondition for both the design of weather derivatives and the assessment of the hedging effectiveness of index based weather insurance. In this article, we show how this task can be accomplished by means of Kriging techniques. Moreover, we compare Kriging with a dynamic semiparametric factor model (DSFM) that has been recently develope...

Better insurance against rainfall risk could improve the security of hundreds of millions of agricultural households around the world. This paper theoretically and experimentally analyzes an innovative financial product called a Weather Insurance Savings Account (WISA), which combines savings and rainfall insurance. We index the insurance share of the WISA by γ ∈ [0, 1] and use a standard model...