The feasibility of index-based insurance as a risk management tool in Central Asia
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This study investigates suitable several indexes, as well as risk coping potential of index-based insurance in Central Asia. This study discusses the challenges of index selection for irrigated systems and compares the results with rainfed systems. For this purpose, suitability and impact of area-yield, irrigation water intake at regional level, as well as remote sensing based indexes are analyzed. The results of the study show that selection of index for the irrigated systems is more complex than rainfed systems and more caution is required in order to minimize the basis risk.