A STUDY ON WEATHER INDEX INSURANCE PRICING USING D4PDF

Abstract

 Production agriculture is exposed to a lot of weather risks particularly in developing countries because of increasing extreme climate events. Weather index insurance, the indemnity is based on a specific weather parameter, have widely spread in the world instead of conventional agriculture insurance. However, the influence of climate change has not been considered explicitly in the pricing of weather index insurance in Japan. Therefore, this study has examined the feasibility of weather index insurance based on rainfall of Ghana by d4PDF and Daron and Stainforth method. In the paper, the application of weather index insurance pricing with climate change effects was briefly demonstrated.