Journal of Risk Analysis and Crisis Response

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Volume 9, Issue 2, June 2019, Pages 111 - 122

Summary of Researches on Basis Risk in Weather Index Insurance

Authors
Yueqin Wang1, 2, Sijian Zhao1, 2, *
1Agricultural Information Institute of Chinese Academy of Agricultural Sciences, Key Laboratory of Digital Agricultural Early-warning Technology, MOA, Beijing 100081, China
2China Institute of Actuarial Science, Central University of Finance and Economics, Beijing 100081, China
Corresponding Author
Sijian Zhao
Received 1 January 2019, Accepted 25 June 2019, Available Online 28 June 2019.
DOI
10.2991/jracr.k.190703.007How to use a DOI?
Keywords
Agricultural Weather Index Insurance; Basis Risk; Formation Mechanism; Quantitative Methods; Risk Management
Abstract

Agricultural weather index insurance overcomes the technology and management problems existing in traditional agricultural insurance, and can effectively transfer agricultural meteorological disasters risk, providing strong guarantee for farmers with small production scale and scattered land. Although weather index insurance has many advantages, governments around the world have made a lot of efforts to expand the coverage, but farmers' demand is still not high. One of the reasons is basis risk. How to reduce it, and improve the operational efficiency of weather index insurance is an important issue that needs to be solved urgently. This paper has summarized researches on the theories and practices of weather index insurance at home and abroad, and systematically comments on the basis risk’s definition, formation mechanism, quantitative methods and management measures. In order to provide useful ideas and references for the development of China's weather index insurance and the future research on basis risk.

Copyright
© 2019, The Authors. Published by Atlantis Press SARL.
Open Access
This is an open access article distributed under the CC BY-NC 4.0 license (http://creativecommons.org/licenses/by-nc/4.0/).

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<Previous Article In Issue
Journal
Journal of Risk Analysis and Crisis Response
Volume-Issue
9 - 2
Pages
111 - 122
Publication Date
2019/06/28
ISSN (Online)
2210-8505
ISSN (Print)
2210-8491
DOI
10.2991/jracr.k.190703.007How to use a DOI?
Copyright
© 2019, The Authors. Published by Atlantis Press SARL.
Open Access
This is an open access article distributed under the CC BY-NC 4.0 license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

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TY  - JOUR
AU  - Yueqin Wang
AU  - Sijian Zhao
PY  - 2019
DA  - 2019/06/28
TI  - Summary of Researches on Basis Risk in Weather Index Insurance
JO  - Journal of Risk Analysis and Crisis Response
SP  - 111
EP  - 122
VL  - 9
IS  - 2
SN  - 2210-8505
UR  - https://doi.org/10.2991/jracr.k.190703.007
DO  - 10.2991/jracr.k.190703.007
ID  - Wang2019
ER  -