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Quality of a hypothetical index insurance contract based on the segmented (sm) regression model with LMD data (R2 of 0.47 and RIB of 0.5) for 8 years and 15 sub-locations in Marsabit, Kenya (points), compared to a perfect insurance contract and to no insurance (lines).

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posted on 08.10.2021, 17:27 by Benson K. Kenduiywo, Michael R. Carter, Aniruddha Ghosh, Robert J. Hijmans

The following classification was used for the contract: True Negatives: No payment due and none paid; Severe False Negatives: contract underpays by more than 30%; Intermediate False Negatives: contract underpays between 10% and 30%; Small False Negative: contract underpays less than 10%, and False Positives: contract overpays.

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