Evaluating ex post predictions of yield risk reduction due to index-based crop insurance
12th Congress of the European Association of Agricultural Economists – EAAE 2008:
This paper evaluates the effectiveness of several index-based crop insurance schemes by comparing results from two alternative evaluation approaches: (i) determining insurance parameters and optimal number of farmer’s insurance contracts; and (ii) evaluating the risk reduction due to the insurance contract. Conducted in Kazakhstan, the study indicates that the common ex post approach overestimates the risk reduction substantially for most index insurance schemes.