Index insurance

Most of my current work concentrates on index insurance, and how to best use weather data in indices. 

New to index insurance?  The best place to start is by watching this video from my team at IRI

This page is still being built, but there are a few useful links below

For more information on index insurance and lots of links, see my group's page here:  

http://irithree.ldeo.columbia.edu/our-expertise/financial-instruments/ 

For a general FAQ on index insurance e.g. what is it?  how can it be useful? - see this link for a guide written by FIST for USAID: 

http://irithree.ldeo.columbia.edu/wp-content/uploads/2013/07/Insurance_Innovations-Final-July-2013.pdf 

 

Index Insurance 101. Instead of basing compensation on observed damage (such as visiting every house or inspecting every field), compensation is awarded based on some externally measured proxy.    In this case, the insurance is based on the height of the river (the index) and would trigger if the river-height reached the top of the stick (the threshold).    For drought insurance, the index might be the total rainfall in June, or the number of dry days in March as measured by a specific rain-gauge, with some threshold to trigger compensation.

Index Insurance 101. Instead of basing compensation on observed damage (such as visiting every house or inspecting every field), compensation is awarded based on some externally measured proxy.

In this case, the insurance is based on the height of the river (the index) and would trigger if the river-height reached the top of the stick (the threshold).

For drought insurance, the index might be the total rainfall in June, or the number of dry days in March as measured by a specific rain-gauge, with some threshold to trigger compensation.

Playing insurance games in Kalbirom, Senegal (HGreatrex, May 2013)

Playing insurance games in Kalbirom, Senegal (HGreatrex, May 2013)