Articles | Volume 20, issue 1
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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Cited articles

Aguilar, D., Andrade, D., Alava, D., Burbano, J., Díaz, M., Garcés, A. L., Jiménez, W., Leiva, D., Loayza, V., Muyulema, W., Pérez, P., Ruiz, V., Simbaña, B., and Yépez, R.: Estimación de superficie sembrada de arroz (Oryza sativa l.) Y maíz amarillo duro (Zea mays l.) En las épocas de invierno y verano año 2015, en las provincias de Manabí, Los Ríos, Guayas, Santa Elena, Loja y El Oro, Quito, Ecuador, available at: (last access: 11 September 2018), 2015. 
Aguilar, D., Alava, D., Burbano, J., Garcés, A. L., Jácome, D., Leiva, D., Simbaña, B., and Yépez, R.: Estimación de superficie sembrada de arroz (Oryza sativa l.), maíz amarillo duro (Zea mays l.) y soya (Glycine max) en las épocas del año 2017, en las provincias de: Guayas, Los Ríos, Manabí, Santa Elena, Loja y El Oro, Quito, Ecuador, 2018. 
Arias, O. V., Garrido, A., Villeta, M., and Tarquis, A. M.: Homogenisation of a soil properties map by principal component analysis to define index agricultural insurance policies, Geoderma, 311, 149–158,, 2018. 
Barnett, B. J. and Mahul, O.: Weather Index Insurance for Agriculture and Rural Areas in Lower-Income Countries, Am. J. Agric. Econ., 89, 1241–1247,, 2007. 
Bullock, J. M., Dhanjal-Adams, K. L., Milne, A., Oliver, T. H., Todman, L. C., Whitmore, A. P., and Pywell, R. F.: Resilience and food security: rethinking an ecological concept, J. Ecol., 105, 880–884,, 2017. 
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.
Final-revised paper