Document Type

Book Chapter

Publication Date

2012

DOI

https://doi.org/10.1093/oxfordhb/9780199734580.013.0006

Abstract

Efforts have been made in India and other countries in recent years to develop formal insurance markets to improve diversification of weather-related income shocks. This article aims to survey the features of one of these markets, the Indian rainfall index insurance market. “Index insurance” refers to a contract whose payouts are linked to a publicly observable index; in this case, the index is cumulative rainfall recorded on a local rain gauge during different phases of the monsoon season. This form of insurance is now available at a retail level in many parts of India, although these markets are still in their relative infancy in terms of product design and distribution.

Disciplines

International Economics | Law | Law and Economics

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