Developing Rainfall-Based Index Insurance in Morocco
Cereal production accounts for about seventy percent of all agricultural land in Morocco. Cereal producer prices, influenced by the government, are higher than world prices. Production is divided into six broad agro-climatic zones. About half of ce...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2001/04/1089479/developing-rainfall-based-index-insurance-morocco http://hdl.handle.net/10986/19674 |
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okr-10986-196742021-04-23T14:03:44Z Developing Rainfall-Based Index Insurance in Morocco Skees, Jerry Gober, Stephanie Varangis, Panos Lester, Rodney Kalavakonda, Vijay AGENTS AGRICULTURAL ECONOMICS AGRICULTURAL INSURANCE AGRICULTURAL LAND AGRICULTURAL PRODUCTION AGRICULTURE AVERAGE ANNUAL RAINFALL BARLEY CAPITAL MARKETS CEREAL CROPS CEREAL YIELDS CEREALS CLIMATE CLIMATIC ZONES COMMODITIES COMMODITY CROP CROP INSURANCE CROPPING CROPS CULTIVATION DEBT DRINKING WATER EFFECTS OF DROUGHT EXTENSION FARM FARM HOUSEHOLDS FARM INCOME FARM IRRIGATION FARMER FARMERS FARMING FARMING SYSTEMS FARMS FERTILIZERS FOOD STORAGE FORESTS FRUITS GDP GRAIN GRAIN STORAGE GROSS DOMESTIC PRODUCT INCOME INCOMES INDEMNITY INDUSTRIAL CROPS INSURANCE INSURANCE CONTRACTS INSURANCE COVERAGE INSURANCE MARKETS INSURANCE OPTIONS INSURANCE POLICIES INSURANCE PREMIUMS INSURANCE PRODUCTS INSURANCE SYSTEM INSURERS LEGUMES LIVESTOCK MAIZE MORAL HAZARD PLANTING POTENTIAL YIELDS PRECIPITATION PRIVATE SECTOR PRODUCERS PRODUCTIVITY PROGRAMS PROPERTY VALUES RATES REINSURANCE REINSURERS RISK MANAGEMENT RISK PREMIUM RISK REDUCTION RURAL DEVELOPMENT SAVINGS SEEDS SPRING TEMPERATURE UNIVERSITIES VEGETATION WHEAT WHEAT PRICES YIELDS Cereal production accounts for about seventy percent of all agricultural land in Morocco. Cereal producer prices, influenced by the government, are higher than world prices. Production is divided into six broad agro-climatic zones. About half of cereal production is concentrated in the favorable, and intermediate zones; the rest occurs mostly in less favorable (arid and semi-arid) zones, with average annual rainfall below 450 millimeters. The authors assess the feasibility of rainfall-based index insurance, to provide effective, low-cost drought insurance for Moroccan farmers, and rural dwellers. Their analysis focuses on Morocco's three main cereal crops - hard wheat, soft wheat, and barley - using data on annual production, and planting from 1978-99. Maize is included in some of the analysis. The benefits of this program over the traditional insurance scheme are that it minimizes the risk of moral hazard, and adverse selection, and promotes a streamlined pay-out-process. These features make the program more attractive to international re-insurers, and investors in capital markets. A rainfall-indexed insurance product is feasible in Morocco, where the statistical correlation between rainfall, and cereal revenues is rather strong in seventeen provinces in the more favorable agro-climatic zones. Proportional rainfall insurance contracts, would pay the insured an amount based on the shortfall in actual rainfall, during a set period, compared with the trigger rainfall. The contracts could be purchased in any amount, allowing farmers to insure the full amount of their expected revenue, if they wish. 2014-08-26T15:27:40Z 2014-08-26T15:27:40Z 2001-04 http://documents.worldbank.org/curated/en/2001/04/1089479/developing-rainfall-based-index-insurance-morocco http://hdl.handle.net/10986/19674 English en_US Policy Research Working Paper;No. 2577 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Middle East and North Africa Morocco |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
AGENTS AGRICULTURAL ECONOMICS AGRICULTURAL INSURANCE AGRICULTURAL LAND AGRICULTURAL PRODUCTION AGRICULTURE AVERAGE ANNUAL RAINFALL BARLEY CAPITAL MARKETS CEREAL CROPS CEREAL YIELDS CEREALS CLIMATE CLIMATIC ZONES COMMODITIES COMMODITY CROP CROP INSURANCE CROPPING CROPS CULTIVATION DEBT DRINKING WATER EFFECTS OF DROUGHT EXTENSION FARM FARM HOUSEHOLDS FARM INCOME FARM IRRIGATION FARMER FARMERS FARMING FARMING SYSTEMS FARMS FERTILIZERS FOOD STORAGE FORESTS FRUITS GDP GRAIN GRAIN STORAGE GROSS DOMESTIC PRODUCT INCOME INCOMES INDEMNITY INDUSTRIAL CROPS INSURANCE INSURANCE CONTRACTS INSURANCE COVERAGE INSURANCE MARKETS INSURANCE OPTIONS INSURANCE POLICIES INSURANCE PREMIUMS INSURANCE PRODUCTS INSURANCE SYSTEM INSURERS LEGUMES LIVESTOCK MAIZE MORAL HAZARD PLANTING POTENTIAL YIELDS PRECIPITATION PRIVATE SECTOR PRODUCERS PRODUCTIVITY PROGRAMS PROPERTY VALUES RATES REINSURANCE REINSURERS RISK MANAGEMENT RISK PREMIUM RISK REDUCTION RURAL DEVELOPMENT SAVINGS SEEDS SPRING TEMPERATURE UNIVERSITIES VEGETATION WHEAT WHEAT PRICES YIELDS |
| spellingShingle |
AGENTS AGRICULTURAL ECONOMICS AGRICULTURAL INSURANCE AGRICULTURAL LAND AGRICULTURAL PRODUCTION AGRICULTURE AVERAGE ANNUAL RAINFALL BARLEY CAPITAL MARKETS CEREAL CROPS CEREAL YIELDS CEREALS CLIMATE CLIMATIC ZONES COMMODITIES COMMODITY CROP CROP INSURANCE CROPPING CROPS CULTIVATION DEBT DRINKING WATER EFFECTS OF DROUGHT EXTENSION FARM FARM HOUSEHOLDS FARM INCOME FARM IRRIGATION FARMER FARMERS FARMING FARMING SYSTEMS FARMS FERTILIZERS FOOD STORAGE FORESTS FRUITS GDP GRAIN GRAIN STORAGE GROSS DOMESTIC PRODUCT INCOME INCOMES INDEMNITY INDUSTRIAL CROPS INSURANCE INSURANCE CONTRACTS INSURANCE COVERAGE INSURANCE MARKETS INSURANCE OPTIONS INSURANCE POLICIES INSURANCE PREMIUMS INSURANCE PRODUCTS INSURANCE SYSTEM INSURERS LEGUMES LIVESTOCK MAIZE MORAL HAZARD PLANTING POTENTIAL YIELDS PRECIPITATION PRIVATE SECTOR PRODUCERS PRODUCTIVITY PROGRAMS PROPERTY VALUES RATES REINSURANCE REINSURERS RISK MANAGEMENT RISK PREMIUM RISK REDUCTION RURAL DEVELOPMENT SAVINGS SEEDS SPRING TEMPERATURE UNIVERSITIES VEGETATION WHEAT WHEAT PRICES YIELDS Skees, Jerry Gober, Stephanie Varangis, Panos Lester, Rodney Kalavakonda, Vijay Developing Rainfall-Based Index Insurance in Morocco |
| geographic_facet |
Middle East and North Africa Morocco |
| relation |
Policy Research Working Paper;No. 2577 |
| description |
Cereal production accounts for about
seventy percent of all agricultural land in Morocco. Cereal
producer prices, influenced by the government, are higher
than world prices. Production is divided into six broad
agro-climatic zones. About half of cereal production is
concentrated in the favorable, and intermediate zones; the
rest occurs mostly in less favorable (arid and semi-arid)
zones, with average annual rainfall below 450 millimeters.
The authors assess the feasibility of rainfall-based index
insurance, to provide effective, low-cost drought insurance
for Moroccan farmers, and rural dwellers. Their analysis
focuses on Morocco's three main cereal crops - hard
wheat, soft wheat, and barley - using data on annual
production, and planting from 1978-99. Maize is included in
some of the analysis. The benefits of this program over the
traditional insurance scheme are that it minimizes the risk
of moral hazard, and adverse selection, and promotes a
streamlined pay-out-process. These features make the program
more attractive to international re-insurers, and investors
in capital markets. A rainfall-indexed insurance product is
feasible in Morocco, where the statistical correlation
between rainfall, and cereal revenues is rather strong in
seventeen provinces in the more favorable agro-climatic
zones. Proportional rainfall insurance contracts, would pay
the insured an amount based on the shortfall in actual
rainfall, during a set period, compared with the trigger
rainfall. The contracts could be purchased in any amount,
allowing farmers to insure the full amount of their expected
revenue, if they wish. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Skees, Jerry Gober, Stephanie Varangis, Panos Lester, Rodney Kalavakonda, Vijay |
| author_facet |
Skees, Jerry Gober, Stephanie Varangis, Panos Lester, Rodney Kalavakonda, Vijay |
| author_sort |
Skees, Jerry |
| title |
Developing Rainfall-Based Index Insurance in Morocco |
| title_short |
Developing Rainfall-Based Index Insurance in Morocco |
| title_full |
Developing Rainfall-Based Index Insurance in Morocco |
| title_fullStr |
Developing Rainfall-Based Index Insurance in Morocco |
| title_full_unstemmed |
Developing Rainfall-Based Index Insurance in Morocco |
| title_sort |
developing rainfall-based index insurance in morocco |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2001/04/1089479/developing-rainfall-based-index-insurance-morocco http://hdl.handle.net/10986/19674 |
| _version_ |
1764440335302262784 |