Weather Risk Management and Viability of Weat...

Weather Risk Management and Viability of Weather Insurance in Punjab

Author Name : Nikhil Sharma, Rohit Bansal

ABSTRACT

Weather risk means that bad weather may disrupt the company's operations or cause property damage. Climate insurance is a form of financial protection against losses or damages that occur as a result of a moderate, severe weather. Wind, snow, rain / thunderstorms, fog, and unacceptable temperatures are examples of these conditions.it can be help farmers to recover their their losses which may happen from weather conditions. Farmers' willingness to pay (WTP) serves as an indicator of the maximum premium they are willing to pay to secure their crop. New options for smallholder farmers include indicative crop insurance or climate insurance against climate control, where payments should be made with very low rainfall, temperature stress, and price-based insurance schemes based on market risk management tools. Instead of covering only a percentage of the risk, such programs may include comprehensive weather risk insurance

Keywords: Weather risk, weather insurance, Crops, Farmers, Rainfall.