Global Ag Risk, Inc.
This is an informative and educational style presentation detailing how various actors pay for catastrophic risks and disasters, with key themes including:
- Weather index insurance should be about ex ante financing and improving the way stakeholders pay for catastrophic losses (this can include market and gov’t solutions)
- Index insurance is best suited for consequential losses
- One-off weather insurance for small households may not be a scalable model
- Insurance that addresses weather risk of firms that serve the poor (risk aggregators) should provide the most opportunity given limitations of providing weather insurance directly to small holders
- Solutions that involve public-private partnerships must clearly distinguish the role for markets and the role for government; understanding cognitive failure for extreme risk can help