2026-07-01http://hdl.handle.net/123456789/411110Designing and rating insurance products requires both science and judgment. In developing and emerging economies, actuarial procedures must be robust and implementable, as well as offering a sufficient degree of transparency and flexibility so as to allow expert judgment to be incorporated. This paper outlines an approach to designing and rating a portfolio of index insurance products that uses both temporal and spatial aspects of the data to increase the efficiency of statistical estimates. The approach has formed the basis for the design and ratemaking methodology implemented by the Agriculture Insurance Company of India for the modified National Agricultural Insurance Scheme, which was initiated by the Government of India in late 2010.application/pdftext/plainCC BY 3.0 IGOhttp://creativecommons.org/licenses/by/3.0/igo/World BankACCIDENTACTUARIESADMINISTRATIVE COSTSADMINISTRATIVE EXPENSESADVERSE SELECTIONAGGREGATE COSTAGRICULTURAL INSURANCEAMOUNT OF RISKAPPLICATIONSBUDGETINGCAPITAL MARKETCLAIMCLAIM PAYMENTCLAIM PAYMENTSCONFIDENTIALITYCOST OF CAPITALCOVERAGECREDIBILITYCROP INSURANCECROP INSURANCE SCHEMEDEGREE OF TRANSPARENCYDEVELOPING COUNTRIESDEVELOPING COUNTRYDISASTERDISASTER REDUCTIONDISASTER RISKDROUGHTSEMERGING ECONOMIESEXTREME EVENTSFARMERFARMERSFINANCIAL INSTITUTIONSFINANCIAL SECTORGOVERNMENT SUBSIDIESGOVERNMENT SUBSIDYGRACE PERIODHOLDINGINCOMEINDEMNITYINSURANCE COMPANYINSURANCE CONTRACTINSURANCE POLICYINSURANCE PRODUCTINSURANCE PRODUCTSINSURANCE PROGRAMINSURANCE PROGRAMSINSURERINSURERSINTERNATIONAL BANKINTERNATIONAL BEST PRACTICEJUDGEJUDGMENTLANDSLIDESLIABILITYMARKET PRACTICEMIDDLE-INCOME COUNTRIESMORAL HAZARDOPPORTUNITY COSTPOLITICAL ECONOMYPORTFOLIOPORTFOLIOSPREMIUMSPRIVATE INSURANCEPRIVATE INSURANCE COMPANIESPRIVATE REINSURANCEPRIVATE SECTOR DEVELOPMENTPROFIT MARGINPROGRAMSRATESREGULATORY REGIMESREINSURANCEREINSURANCE MARKETSREINSURERSRESERVESRISK CAPITALRISK MANAGEMENTRISK SHARINGRISK TRANSFERSETTLEMENTSETTLEMENT OF CLAIMSSOLVENCYSOLVENTTECHNICAL ASSISTANCETECHNOLOGICAL CHANGES