Risk Modeling for Appraising Named Peril Index Insurance Products PDF Download

Author: Shadreck Mapfumo
Publisher: World Bank Publications
ISBN: 1464810494
Category : Business & Economics
Languages : en
Pages : 394

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Book Description
Named peril index insurance has great potential to address unmet risk management needs for agricultural insurance in developing economies, potentially contributing to increased agricultural sustainability and improved food security. However, the development and appraisal of index insurance business lines is not without challenges. Insurers must rigorously evaluate the quality of the products they offer and take care to ensure that distributors and policyholders understand the benefits and limits of the purchased coverage. Without these important steps to ensure responsible insurance practices, insurers can damage the implementation and potential of index insurance in the market. Risk Modeling for Appraising Named Peril Index Insurance Products: A Guide for Practitioners helps stakeholders in the named peril index insurance industry appraise new and existing products. Part 1 of the guide provides a summary of the insights and decisions required for the insurer to make an informed decision to launch and expand an index insurance business line. Insurance managers are the primary audience for part 1. Part 2 provides a step-by-step guide to calculating the decision metrics used by the insurance manager in part 1. These metrics are calculated using probabilistic modeling that provides insights into risks related to the index insurance product. Actuarial analysts are the primary audience for part 2. In an increasingly competitive insurance market, creative product development and imaginative business strategies are becoming the norm. This guide will help emerging market insurers who seek to stay on the cutting edge to successfully and sustainably penetrate new market segments.

Author: Molly E. Hellmuth
Publisher:
ISBN: 9780972925259
Category : Climatic changes
Languages : en
Pages : 112

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Book Description
This publication examines the use of index insurance to help reduce vulnerability and poverty and adapt to climate change. Experience in index insurance to-date has been limited to individual case studies, which show promise of lessening the impacts of climate shocks, and enabling investment and growth in the agriculture sector. However, these cases have also uncovered significant questions that must be answered in order to start implementing index insurance at a scale relevant to attaining meaningful development impacts. The publication looks at the technical and operational challenges that currently limit the growth and spread of index insurance. It highlights a number of case studies of the various applications of index insurance across the world.

Author: Miguel Carriquiry
Publisher:
ISBN:
Category : Agriculture
Languages : en
Pages : 36

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Book Description
Index insurance and probabilistic seasonal forecasts are becoming available in developing countries to help farmers manage climate risks in production. Although these tools are intimately related, work has not been done to formalize the connections between them. We investigate the relationship between the risk management tools through a model of input choice under uncertainty, forecasts, and insurance. While it is possible for forecasts to undermine insurance, we find that when contracts are appropriately designed, there are important synergies between forecasts, insurance, and effective input use. Used together, these tools overcome barriers preventing the use of imperfect information in production decision making.

Author: Lu Yu
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description
Rural communities are particularly vulnerable to weather shocks and ecosystem decline. Traditionally, farmers have adapted to climate variability and extremes through various risk management strategies, either individually or cooperatively. However, climate change amplifies the frequency and intensity of extreme weather events and exacerbates environmental degradation processes. Market-based risk transfer instruments are now being developed as complements to these conventional risk management strategies to shield rural households from increasing climate risks. At present, risk transfer solutions play a central role in the global climate and development agenda. International- and regional-level initiatives such as the InsuResilience Global Partnership support vulnerable developing countries to increase their financial protection coverage through climate risk finance and insurance, including through innovative micro-level schemes such as weather index insurance. Over the last decade, index-based weather insurance has been gaining attention in the climate resilience discourse. These schemes compensate insured individuals based on a pre-defined weather index instead of individual losses, as with traditional types of insurance. Therefore, this instrument has several advantages, including greater time- and cost-effectiveness and reduced moral hazard risk. Although weather-index insurance holds great promise, there are several challenges in designing and promoting it in developing countries. First, on the demand side, there is a lack of accessibility to affordable insurance, especially for the poorest rural populations exposed to climate hazards. Second, on the supply side, insurance providers are facing an elevated risk of paying larger claims due to the increasing frequency and severity of weather extremes, while reinsurance services are often missing. Third, the ecological effects of implementing weather index microinsurance initiatives receive little attention in research and policy. Yet, protecting the environment and building ecological resilience are critical policy dimensions of climate risk management in rural regions, where the poor disproportionately depend on ecosystem goods and services for a living, as they often lack alternative livelihood strategies. Looking into the key challenges to microinsurance initiatives and drawing upon findings of a review of literature on weather index insurance and field research, this Briefing Paper derives recommendations for development cooperation, governments and insurers for an enhanced action agenda on climate risk insurance. The discussion is focused on the specific case of weather index insurance for the rural poor at the micro level. We emphasise the importance of enhancing knowledge on the potential positive and negative ecological effects of weather insurance schemes, and the need to develop a diverse set of climate risk management strategies for the poor, including social protection mechanisms.

Author: Reinhard Mechler
Publisher: Springer
ISBN: 3319720260
Category : Science
Languages : en
Pages : 557

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Book Description
This book provides an authoritative insight on the Loss and Damage discourse by highlighting state-of-the-art research and policy linked to this discourse and articulating its multiple concepts, principles and methods. Written by leading researchers and practitioners, it identifies practical and evidence-based policy options to inform the discourse and climate negotiations. With climate-related risks on the rise and impacts being felt around the globe has come the recognition that climate mitigation and adaptation may not be enough to manage the effects from anthropogenic climate change. This recognition led to the creation of the Warsaw International Mechanism on Loss and Damage in 2013, a climate policy mechanism dedicated to dealing with climate-related effects in highly vulnerable countries that face severe constraints and limits to adaptation. Endorsed in 2015 by the Paris Agreement and effectively considered a third pillar of international climate policy, debate and research on Loss and Damage continues to gain enormous traction. Yet, concepts, methods and tools as well as directions for policy and implementation have remained contested and vague. Suitable for researchers, policy-advisors, practitioners and the interested public, the book furthermore: • discusses the political, legal, economic and institutional dimensions of the issue• highlights normative questions central to the discourse • provides a focus on climate risks and climate risk management. • presents salient case studies from around the world.

Author: Stephen Jewson
Publisher: Cambridge University Press
ISBN: 1139444514
Category : Business & Economics
Languages : en
Pages : 393

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Book Description
Originally published in 2005, Weather Derivative Valuation covers all the meteorological, statistical, financial and mathematical issues that arise in the pricing and risk management of weather derivatives. There are chapters on meteorological data and data cleaning, the modelling and pricing of single weather derivatives, the modelling and valuation of portfolios, the use of weather and seasonal forecasts in the pricing of weather derivatives, arbitrage pricing for weather derivatives, risk management, and the modelling of temperature, wind and precipitation. Specific issues covered in detail include the analysis of uncertainty in weather derivative pricing, time-series modelling of daily temperatures, the creation and use of probabilistic meteorological forecasts and the derivation of the weather derivative version of the Black-Scholes equation of mathematical finance. Written by consultants who work within the weather derivative industry, this book is packed with practical information and theoretical insight into the world of weather derivative pricing.

Author: بدر، علي
Publisher: Oxford University Press
ISBN: 9774162986
Category : Fiction
Languages : en
Pages : 185

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Book Description
After a failed study mission in France, Abd al-Rahman returns home to Iraq to launch an existentialist movement akin to that of his hero. Convinced that it falls upon him to introduce his country's intellectuals to Sartre's thought, he feels especially qualified by his physical resemblance to the philosopher (except for the crossed eyes) and by his marriage to Germaine, who he claims is the great man's cousin. Meanwhile, his wealth and family prestige guarantee him an idle life spent in drinking, debauchery, and frequenting a well-known nightclub. But is his suicide an act of philosophical despair, or a reaction to his friend's affair with Germaine? A biographer chosen by his presumed friends narrates the story of a somewhat bewildered young man who--like other members of his generation--was searching for a meaning to his life. This parody of the abuses and extravagances of pseudo-philosophers in the Baghdad of the sixties throws into relief the Iraqi intellectual and cultural life of the time and the reversal of fortune of some of Iraq's wealthy and powerful families.

Author: Ephias Makaudze
Publisher: AFRICAN SUN MeDIA
ISBN: 191998545X
Category : Technology & Engineering
Languages : en
Pages : 146

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Book Description
ÿThe international conference on ?Weather index insurance in Africa: lessons learnt and goals for the future? was organised by the Department of Economics, University of the Western Cape, in collaboration with its international partners. The conference attracted over 40 participants drawn from academic and research institutions, insurance practitioners, reinsurers, government policy makers, bankers, agricultural producers, and representatives of non-governmental organisations. The presenters highlighted experiences, challenges and opportunities based on current pilot projects on weather index insurance in many parts of Africa.

Author: Kiran Sood
Publisher: John Wiley & Sons
ISBN: 139416792X
Category : Business & Economics
Languages : en
Pages : 500

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Book Description
The Impact of CLIMATE CHANGE and SUSTAINABILITY STANDARDS on the INSURANCE MARKET The book explores the role of the insurance industry in contributing and responding to the harms that climate change has brought. This book delves into the physical and logical impacts, both direct and indirect, on the insurance industry. Subjects discussed include new technology such as big data, artificial intelligence, machine learning, the growth of sustainable economics with foreign direct investments (FDIs), trustworthiness, and ethics. Related use cases of data science for claim processing, fraud detection and prevention, policy administration, pricing, and underwriting are discussed along with cyber security issues, data protection, and big data regulatory reforms. To promote ESG sustainability, the insurance industry plays a critical and significant role. Climate-related risks are being factored into underwriting and investing strategies. Through their own operations and business activities, insurers may promote the ESG agenda and move towards sustainability. Also discussed are promoting diversity and inclusion, lowering greenhouse gas (GHG) emissions, resolving gender inequality, and helping communities through charitable work, which all improve a company’s brand, reputation, and ESG credentials. Audience The book is specially designed for administrators, lecturers, researchers, students of insurance and sustainability, students in financial services, insurance practitioners, actuaries, loss adjusters, underwriters, regulators, facilities management, utility companies, voluntary organizations, government departments, business leaders, policymakers, decision-makers, investors, risk managers, compliance managers, and audit managers amongst many others.

Author: Tufa Dinku
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description
The World Bank Group's Global Index Insurance Facility (GIIF) in partnership with its regional partners has been working with researchers and scientists to refine satellite technology for index insurance product design. The International Research Institute on Climate and Society (IRI)'s Financial Instruments Sector Team--a GIIF partner--for instance, has worked in over a dozen countries on index contracts with tens of thousands of policies purchased by farmers vulnerable to climate change. The team partners with farmers and international institutions such as the World Bank Group (WBG) to explore the potential for using index insurance in developing countries to assist emerging markets, increase productivity of small farmers, and reduce threats to crops and livelihoods from climate risk.