Structural Innovation in Weather-Indexed Crop Insurance

Research Note
Published on 19 June 2023


We develop a structural and computational framework that improves compensation accuracy of weather-indexed crop insurance through individualised coverage. Our design remains purely weather-contingent and thus retains the main advantages of standard, non-customisable weather-indexed insurance.


Robert M. Townsend

Massachusetts Institute of Technology

Kamilya Tazhibayeva

Massachusetts Institute of Technology