Statistical Analysis of Rainfall Insurance Payouts in Southern India

Giné ; , Xavier ; Townsend, Robert ; Vickery, James

World Bank, Washington, DC

关键词: ADVERSE SELECTION;    ADVERSE SELECTION PROBLEMS;    BALANCE SHEET;    BUDGETING;    BUSINESS SCHOOL;   

DOI  :  10.1596/1813-9450-4426
RP-ID  :  WPS4426

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Using 40 years of historical rainfalldata, this paper estimates a distribution for payouts onrainfall insurance policies offered to farmers in the Stateof Andhra Pradesh, India, in 2006. The authors find that thecontracts primarily protect households against extreme tailevents; half the expected value of indemnities paid by theinsurance are generated by only 2 percent of rainfallrealizations. Contract payouts are significantly correlatedcross-sectionally, and also inversely associated with realGDP growth. The paper discusses the implications of thesefindings for the potential benefits of insurance tohouseholds, the risks facing a financial institutionunderwriting rainfall insurance contracts, and pricing.