Back to Library

Introduction of Weather Index Insurance in Ukraine – Obstacles and Opportunities

Published by:
Document
Download
Publication date
06/07/2007
Number of Pages
20
Language:
English
Type of Publication:
Event Reports
Studies
Focus Region:
Europe
Focus Topic:
Climate / Weather / Environment
Type of Risk:
Weather & Climate related
Type of Risk Managment Option:
Risk transfer
Commodity:
Crops
Livestock
Author
Roman Shynkarenko
Organization
Agroinsurance.com

Ukraine has good quality weather and crop yield data that is sufficient for design of weather structures. The country has sufficient scientific and practical expertise to design and support index structures. National legislation allows the use of weather instruments for agricultural applications. The insurance companies can comparatively easy register the rules of weather index insurance. It should be understood that the weather index concept is new to insurers and staff should be additionally trained to be able to sell contracts. Current MPCI and yield index products do not meet the needs of producers. The products suffer from classical problems of traditional insurance including asymmetry of information (anti-selection, moral hazard, and the are costly to administrate. The public support program in Ukraine is in the pilot phase and is ready to include weather indexes (the legislation foresees the introduction of weather indexes within the support program).