Agricultural insurances based on meteorological indices: realizations, methods and research challenges

In many low‐income countries, agriculture is mostly rainfed and crop yield depends highly on climatic factors. Furthermore, farmers have little access to traditional crop insurance, which suffers from high information asymmetry and transaction costs. Insurances based on meteorological indices could fill this gap since they do not face such drawbacks. However, a full‐scale implementation has been slow so far.

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