# Crop vs. Weather Insurance See video in references. This is a great example of how simply viewing a problem from another angle and questioning assumptions can be incredibly productive in terms of problem solving. For instance, insurance of a crop is very challenging. You have to worry about **selection bias** and **moral hazard**. However, what if we look at the problem a different way? What is the dependency structure in play (causal diagram)? We see that a crop is actually impacted (depends on) by the weather. It is bad weather hurting the crop that we are insuring against. So what if we simply insure against bad weather? It may have its issues, but it is a fundamentally different way of approaching the problem. --- Date: 20211231 Links to: [Actuarial Science](Actuarial%20Science.md) [Critical Thinking MOC](Critical%20Thinking%20MOC.md) Tags: References: * [Financial Insurance](https://youtu.be/TVoY5cXooGY?t=487)