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Parametric Crop Insurance Against Floods: The Case Of Bosnia And Herzegovina

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  • Bojan Baškot
  • Stanko Stanić

Abstract

The importance of risk man-agement in agriculture is unquestionable. Farmers in Bosnia and Herzegovina face weather, product, and price and market risk. Index-based insurance products for agriculture present alternatives for man-aging weather risk. They differ from clas-sical insurance products in that they do not remunerate actual loss and to purchase a weather index insurance policy the insured does not actually have to have an insurable interest. In this research, two flood para-metric insurance products are presented, one with fixed compensation and the other with compensation proportional to flood intensity.

Suggested Citation

  • Bojan Baškot & Stanko Stanić, 2020. "Parametric Crop Insurance Against Floods: The Case Of Bosnia And Herzegovina," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 65(224), pages 83-100, January –.
    • Handle: RePEc:beo:journl:v:65:y:2020:i:224:p:83-100
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    References listed on IDEAS

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    More about this item

    Keywords

    catastrophic insurance; weather-index-based insurance; insurance premium;
    All these keywords.

    JEL classification:

    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies

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