Articles | Volume 385
https://doi.org/10.5194/piahs-385-117-2024
© Author(s) 2024. This work is distributed under
the Creative Commons Attribution 4.0 License.
the Creative Commons Attribution 4.0 License.
https://doi.org/10.5194/piahs-385-117-2024
© Author(s) 2024. This work is distributed under
the Creative Commons Attribution 4.0 License.
the Creative Commons Attribution 4.0 License.
Post-conference publication
| 
18 Apr 2024
Post-conference publication |
| 18 Apr 2024
| 18 Apr 2024
Mitigating Drought Financial Risk for Water Supply Sector through Index-Based Insurance Contracts
Gabriela C. Gesualdo
CORRESPONDING AUTHOR
São Carlos School of Engineering, University of Sao Paulo, Sao Carlos, Brazil
Marcos R. Benso
São Carlos School of Engineering, University of Sao Paulo, Sao Carlos, Brazil
Fabrício A. R. Navarro
São Carlos School of Engineering, University of Sao Paulo, Sao Carlos, Brazil
Luis M. Castillo
São Carlos School of Engineering, University of Sao Paulo, Sao Carlos, Brazil
Eduardo M. Mendiondo
São Carlos School of Engineering, University of Sao Paulo, Sao Carlos, Brazil
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Short summary
We simulated indexed insurance for a water utility responsible for providing water to 7.2 million people in a metropolitan region. According to our findings, an annual amount (premium) of USD 0.43, 0.87, and 1.73 should be charged per person to obtain drought coverage for three, six, and twelve months. The premium fee can be implemented in the water bills as a new strategy to pool the risk between the supplied users and the utility, to prevent them from being exposed to surcharge fluctuations.
We simulated indexed insurance for a water utility responsible for providing water to 7.2...
