Statistical Analysis of Rainfall Insurance Payouts in Southern India

Xavier Gine
Robert M. Townsend
James Vickery
Publication Type: 
Papers
Publication Article File: 
Journal Name: 
American Journal of Agricultural Economics
Journal Volume: 
89
Journal Number: 
5
Pages: 
1248-1254
Publication Year: 
2007

This article uses historical rainfall data to estimate the distribution of payouts on a rainfall index insurance product developed by the general insurer ICICI Lombard and offered to rural Indian households since 2003. Our empirical strategy draws on the observation that rainfall in the region we study is close to a stationary process. Correspondingly we can use historical rainfall data to calculate a putative history of insurance payouts for insurance contracts written against the 2006 monsoon.

Region: 
South and Central Asia
Country: 
India
Topic: 
Agriculture
Topic: 
Insurance
Topic: 
Growth