We use cookies on this website to give you a better user experience. By continuing to browse the site, you are agreeing to our use of cookies. Learn more

Index-Based Risk Financing and Development of Natural Disaster Insurance in Developing Asian Countries

Index-Based Risk Financing and Development of Natural Disaster Insurance in Developing Asian Countries
Date:
1 August 2013
Authors:
Sommarat Chantarat, Krirk Pannangpetch, Nattapong Puttanapong, Preesan Rakwatin, Thanasin Tanompongphandh
Tags:
Macroeconomy, Social Protection

Print Article:

 

This paper explores innovations in index-based risk transfer products (IBRTPs) as a means to address important insurance market imperfections that have precluded the emergence and sustainability of formal insurance markets in developing countries, where uninsured natural disaster risk remains a leading impediment of economic development. Using a combination of disaggregated nationwide weather, remote sensing and household livelihood data commonly available in developing countries, the paper provides analytical framework and empirical illustration on showing design nationwide and scalable IBRTP contracts, to analyse hedging effectiveness and welfare impacts at the micro level, and to explore cost effective risk-financing options. Thai rice production is used in our analysis with the goal to extend the methodology and implications to enhance development of national and regional disaster risk management in Asia.

ERIA-DP-2013-09

Search ERIA.org

Latest Multimedia

Indonesia's ASEAN Chairmanship 2023 High-Level Policy Dialogue: ASEAN Digital Community 2045

ERIA Knowledge Lab Discusses Scaling Up Innovation and Digital Technology Ecosystem

Is ASEAN Ready for Electric Vehicles? | ASEAN Insights Podcast

Latest Articles

14 June 2024
Editor(s)/Author(s):
ERIA’s Annual Report 2023 highlights the organisation’s wide range of activities,[...]
5 June 2024
Editor(s)/Author(s):
ERIA publishes a diverse range of materials including books, research reports, discussion[...]