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World Bank - Insurance against Covariate Shocks: The Role of Index-Based Insurance in Social Protection in Low-Income Countries of Africa (2007)

Jan 01, 2007 | H. Alderman, T. Haque | The World Bank
This paper argues that index insurance, such as weather indexing, addresses inherent problems in insurance by using an indicator that is not affected by individual behavior and may address monitoring costs and moral hazard. The paper also presents a number of innovations using index insurance that are currently being tested in diverse settings ranging from India to Mongolia to Malawi.