TY - BOOK ID - 138540786 TI - Statistical Analysis of Rainfall Insurance Payouts in Southern India AU - Gine, Xavier AU - Townsend, Robert AU - Vickery, James PY - 2007 PB - Washington, D.C., The World Bank, DB - UniCat KW - Debt Markets KW - Deposit Insurance KW - Emerging Markets KW - Federal Reserve KW - Federal Reserve Bank KW - Federal Reserve System KW - Finance and Financial Sector Development KW - Financial Institution KW - Financial Support KW - Hazard Risk Management KW - Insurance KW - Insurance Policies KW - International Bank KW - Labor Policies KW - Microinsurance KW - Private Sector Development KW - Risk Factors KW - Social Protections and Labor KW - Urban Development UR - https://www.unicat.be/uniCat?func=search&query=sysid:138540786 AB - Using 40 years of historical rainfall data, this paper estimates a distribution for payouts on rainfall insurance policies offered to farmers in the State of Andhra Pradesh, India, in 2006. The authors find that the contracts primarily protect households against extreme tail events; half the expected value of indemnities paid by the insurance are generated by only 2 percent of rainfall realizations. Contract payouts are significantly correlated cross-sectionally, and also inversely associated with real GDP growth. The paper discusses the implications of these findings for the potential benefits of insurance to households, the risks facing a financial institution underwriting rainfall insurance contracts, and pricing. ER -