Articles | Volume 20, issue 1
https://doi.org/10.5194/nhess-20-345-2020
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, Paloma Esteve, Ana María Tarquis, and Alberto Garrido

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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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