ESSP Research Note 20 "Insuring against the Weather" by Guush Berhane, Daniel Clarke, Stefan Dercon, Ruth Vargas Hill, and Alemayehu Seyoum Taffesse. Weather risk remains a major challenge to farming in poor countries that face frequent droughts. Recent evidence on index-based weather insurance points to low take-up rates largely due to basis risk (i.e. residual […]