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Risk and Insurance

Published by:
Online Location
Publication date
Type of Publication:
Online platforms & databases
Focus Region:
Focus Topic:
Climate / Weather / Environment
Type of Risk:
Biological & environmental
Policy & institutional
Type of Risk Managment Option:
Risk reduction/mitigation
Risk & Insurance

This is a component of a collection of several documents/publications by the Rural Finance Learning Center. This site is valuable because there are many reasons for risk transfer out of developing countries is important. Natural disasters impede the development process, push households into poverty, and the drain fiscal resources of developing countries. The two major challenges which obstruct the development of risk transfer markets for agricultural losses caused by extreme weather events are: 1) organizing ex ante financing for highly correlated losses that result in extremely large financial exposure; and, 2) high transaction costs due to asymmetric information problems such as moral hazard and adverse selection. This site provides links to several documents related to these topics to facilitate learning and the development of new ways to cope with these challenges.