000			nab a22 7a 4500
999			_c61230 _d61222
001			61230
003			MX-TxCIM
005			20200127181341.0
008			200123s2018 ne |||p|op||| 00| 0 eng d
022			_a2212-4209
024	8		_ahttps://doi.org/10.1016/j.ijdrr.2018.01.001
040			_aMX-TxCIM
041			_aeng
100	1		_911101 _aClement, K.Y.
245	1	2	_aA global review of the impact of basis risk on the functioning of and demand for index insurance
260			_aAmsterdam (Netherlands) : _bElsevier, _c2018.
500			_aPeer review
520			_aClimate change is increasing the risks of weather-related disasters in many regions around the world. This has an adverse socio-economic impact on households, farmers and small businesses. Some strategies for effectively managing climate related disasters include index based insurance products, which are increasingly offered as alternatives to traditional insurance, particularly in low-income countries. However, the uptake of index insurance remains low, which can be partially attributed to the inherent problem of basis risk. This review assesses the problem of basis risk that occurs when insurance payouts depend on an index that is imperfectly related with actual losses experienced by the insurance policyholder. Special attention is paid to the design of the index, quality and sampling data, the estimation of basis risk and its influence on insurance demand, and index-insurance supply. The paper concludes with several policy recommendations including the need for a systematic approach to quantify the magnitude of basis risk, to inform index design with participatory approaches, to offer index insurance through existing risk sharing networks. Moreover, we recommend to improve policyholders access to information about their risk and measures they can take to limit risk, create an enabling environment for a well-functioning insurance market, and lastly to have an integrated approach that incorporates insurance with other mechanisms that reduce basis risk.
546			_aText in English
650		7	_2AGROVOC _99707 _aRisk
650		7	_2AGROVOC _91045 _aClimate change
650		7	_2AGROVOC _99291 _aInsurance
650		7	_2AGROVOC _910984 _aNatural disasters
700	1		_911102 _aWouter Botzen, W.J.
700	1		_911103 _aBrouwer, R.
700	1		_911104 _aAerts, J.C.J.H.
773	0		_dAmsterdam (Netherlands) : Elsevier, 2018. _gv. 28, p. 845-853 _tInternational Journal of Disaster Risk Reduction _x2212-4209
942			_2ddc _cJA _n0