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Designing Agricultural Index Insurance in Developing Countries: A Global AgRisk Market Development Model Handbook for Policy and Decision Makers

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Publication date
30/07/2009
Number of Pages
154
Language:
English
Type of Publication:
Guidelines & Learning resources
Focus Region:
Global
Focus Topic:
Institutions / Organizations
Market / Trade
Type of Risk:
Market-related
Policy & institutional
Type of Risk Managment Option:
Risk transfer
Commodity:
Crops
Author
Jerry Skees, Jason Hartell, Anne G. Murphy, Benjamin Collier
Organization
GlobalAgRisk, Inc.

This GlobalAgRisk Market Development Model handbook offers a conceptual framework to guide policy makers and stakeholders for implementing and designing agricultural index insurance products in developing countries and uses the market development experience of GlobalAgRisk in Vietnam as its centerpiece example. Agricultural insurance is an important element of risk management that can contribute to dynamic and responsive rural financial markets. Before an appropriate and effective risk management policy or agricultural insurance program can be developed, a clear understanding of the risks that can be insured and the challenges to developing agricultural insurance is critical. Market development as an ongoing process, which requires assessing and evaluating the economic and social importance of agriculture in a country, its structure of agriculture, its exposure to natural disasters, and the existing institutional arrangements that may substitute for agricultural insurance, and then a careful monitoring and assessment of the results of decision making.