Articles | Volume 20, issue 1
Nat. Hazards Earth Syst. Sci., 20, 345–362, 2020
https://doi.org/10.5194/nhess-20-345-2020

Special issue: Remote sensing, modelling-based hazard and risk assessment,...

Nat. Hazards Earth Syst. Sci., 20, 345–362, 2020
https://doi.org/10.5194/nhess-20-345-2020
Research article
28 Jan 2020
Research article | 28 Jan 2020

Remote sensing in an index-based insurance design for hedging economic impacts on rice cultivation

Omar Roberto Valverde-Arias et al.

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Short summary
We designed an index-based insurance (IBI) for drought and flood in rice crops in Babahoyo (Ecuador). We assessed Babahoyo's soil, climatic and topographic variability, finding two homogeneous zones inside this area. We set differentiated insurance premiums according to the particular risk status of each zone. Results demonstrate that this IBI is an efficient risk transfer tool for policyholders. This insurance design could contribute to stabilizing farmers' incomes and rice production.
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