Abstract
Weather index-based insurance (WIBI), of which index-based flood insurance (IBFI) is a type, is a very potent institutional innovation to minimize the risks faced by smallholder farmers in flood prone South and Southeast Asia region. Though floods have been an integral part of the ecology of this region, the increase in their frequency and damage potential due to climate change have become major concerns. This paper reviews features of weather index-based crop insurance (WIBCI), including IBFI, and its performance, in India and a few developing countries. It also elucidates measures for bettering performance of WIBCI, and the specific requirements to introduce IBFCI pilots for medium-risk floods on a meso scale. Based on the critical review of various schemes in the public and private sectors, we elucidate measures for improving the performance of WIBCI and outline specific requirements for introducing IBFCI pilots for medium-risk floods on a meso scale.
This study was conducted before implementation of Prime Minister Agriculture Insurance Scheme in India.
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Tyagi, N.K., Joshi, P.K. (2019). Index-Based Insurance for Mitigating Flood Risks in Agriculture: Status, Challenges and Way Forward. In: Pal, B., Kishore, A., Joshi, P., Tyagi, N. (eds) Climate Smart Agriculture in South Asia. Springer, Singapore. https://doi.org/10.1007/978-981-10-8171-2_9
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