Panel Discussion | The Effectiveness of Index-based Insurance as a Tool to Manage Weather Risks in a Highly Volatile Climate.
Panel Discussion at the FARMD Annual Conference: Price Volatility and Climate Change, Implications for the Agricultural Risk Management Agenda. Zurich, June 9-10, 2011.
FARMD (September 2011) | Index insurance has attracted a large amount of attention in recent years, mainly due to its potential to address some of the problems that plague traditional agriculture schemes. With index insurance products, payments are based on an independent measure that is highly correlated with farm-level yield or revenue outcomes. Unlike traditional crop insurance that attempts to measure individual farm yields or revenues, index insurance makes use of variables exogenous to the individual policyholder— such as area-level yield, an objective weather event, or a measure such as temperature or rainfall—but has a strong correlation to farm-level losses.
Representatives from leading organizations, with a standing trajectory in this field, were invited to provide perspective on the challenges associated with index-based insurance programs, on the innovations that might help address some of those challenges, and the true potential of this tool to effectively address climate/weather risks in developing countries.
Participants on the panel included (click on the name to watch the individual presentations):