Climatic and socio-economic vulnerability pose significant challenges to development, often requiring large-scale solutions to overcome. Index based microinsurance for weather risk transfer is one potential element of sustainable and scalable management solutions. An agent-partner, index-based microinsurance product design was explored as a risk management tool for drought in Ethiopia. This research used scenario-based computer modeling and qualitative interviews to test the supply and demand-side sustainability of index products. Robust decision methods were used to consider uncertainty in the estimates of product design and financial sustainability.

Robust decision making for sustainable index-based microinsurance


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