Agricultural Risk Transfer

Agricultural Risk Transfer

by Roman Marco Hohl
Released March 2019
Publisher(s): Wiley
ISBN: 9781119345633

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Book description

Gain a holistic view of agricultural (re)insurance and capital market risk transfer

Increasing agricultural production and food security remain key challenges for mankind. In order to meet global food demand, the Food and Agriculture Organisation estimates that production has to increase by 50% by 2050 and requires large investments. Agricultural insurance and financial instruments have been an integral part to advancing productivity and are becoming more important in increasingly globalized and specialized agricultural supply chains in the wake of potentially more frequent and severe natural disasters in today’s key producing markets.

Underwriting, pricing and transferring agricultural risks is complex and requires a solid understanding of the production system, exposure, perils and the most suitable products, which vastly differ among developed and developing markets. In the last decade, new insurance schemes in emerging agricultural markets have greatly contributed to the large growth of the industry from a premium volume of US$10.1 billion (2006) to US$30.7 billion (2017). This growth is bound to continue as insurance penetration and exposure increase and new schemes are being developed. Agricultural (re)insurance has become a cornerstone of sovereign disaster risk financing frameworks.

Agricultural Risk Transfer introduces the main concepts of agricultural (re)insurance and capital market risk transfer that are discussed through industry case studies. It also discusses best industry practices for all main insurance products for crop, livestock, aquaculture and forestry risks including risk assessment, underwriting, pricing, modelling and loss adjustment.

  • Describes agricultural production risks and risk management approaches
  • Covers risk transfer of production and financial risks through insurance and financial instruments
  • Introduces modelling concepts for the main perils and key data sources that support risk transfer through indemnity- and index-based products
  • Describes risk pricing and underwriting approaches for crop, livestock, aquaculture and forestry exposure in developed and developing agricultural systems
  • Become familiar with risk transfer concepts to reinsurance and capital markets
  • Get to know the current market landscape and main risk transfer products for individual producers, agribusinesses and governments through theory and comprehensive industry case studies

Through Agricultural Risk Transfer, you’ll gain a holistic view of agricultural (re)insurance and capital market solutions which will support better underwriting, more structured product development and improved risk transfer. 

Table of contents

  1. Cover
  2. Foreword
  3. Introduction
    1. OVERVIEW OF CHAPTERS
  4. Acknowledgements
  5. Special Thanks
  6. CHAPTER 1: Agricultural Markets and Risk Management
    1. 1.1 INTRODUCTION
    2. 1.2 TRENDS AND CHALLENGES IN THE AGRICULTURAL SECTOR
    3. 1.3 RISK MANAGEMENT IN AGRICULTURE
    4. BIBLIOGRAPHY
    5. NOTES
  7. CHAPTER 2: Concepts of Insurance
    1. 2.1 INTRODUCTION
    2. 2.2 GLOBAL INSURANCE MARKET
    3. 2.3 KEY CONCEPTS OF INSURANCE
    4. 2.4 ACTUARIAL INSURANCE PRICING
    5. CATASTROPHE RISK MODELLING
    6. BIBLIOGRAPHY
    7. NOTES
  8. CHAPTER 3: Agricultural Perils and Risk Modelling Concepts
    1. 3.1 INTRODUCTION
    2. 3.2 OVERVIEW OF MAIN PERILS FOR AGRICULTURE
    3. 3.3 DROUGHT
    4. 3.4 FLOOD
    5. 3.5 HAIL
    6. 3.6 FROST
    7. 3.7 SNOW
    8. 3.8 CYCLONES
    9. 3.9 WILDFIRES
    10. 3.10 EPIDEMIC LIVESTOCK DISEASES
    11. 3.11 EPIDEMIC AQUACULTURE DISEASES
    12. BIBLIOGRAPHY
    13. NOTES
  9. CHAPTER 4: Agricultural Data and Proxies
    1. 4.1 INTRODUCTION
    2. 4.2 CLIMATE DATA
    3. 4.3 SATELLITE DATA
    4. 4.4 CROP YIELD DATA
    5. 4.5 DISASTER AND CALAMITY DATA
    6. 4.6 LIVESTOCK AND AQUACULTURE DATA
    7. 4.7 FORESTRY DATA
    8. BIBLIOGRAPHY
    9. NOTES
  10. CHAPTER 5: Agricultural Insurance
    1. 5.1 INTRODUCTION
    2. 5.2 GLOBAL AGRICULTURAL INSURANCE MARKETS
    3. 5.3 BENEFITS OF AGRICULTURAL INSURANCE
    4. 5.4 CHALLENGES OF AGRICULTURAL INSURANCE
    5. 5.5 AGRICULTURAL INSURANCE SYSTEMS
    6. 5.6 FORMS OF AGRICULTURAL INSURANCE OPERATIONS
    7. BIBLIOGRAPHY
    8. NOTES
  11. CHAPTER 6: Crop Insurance
    1. 6.1 INTRODUCTION
    2. 6.2 SECTOR TRENDS
    3. 6.3 OVERVIEW OF MAIN CROP INSURANCE PRODUCTS
    4. 6.4 NAMED-PERIL CROP INSURANCE
    5. 6.5 MULTI-PERIL CROP INSURANCE
    6. 6.6 REVENUE INSURANCE
    7. 6.7 INCOME INSURANCE
    8. 6.8 AREA-YIELD INDEX INSURANCE
    9. 6.9 WEATHER INDEX INSURANCE
    10. 6.10 SATELLITE-BASED INDEX INSURANCE
    11. 6.11 MODEL-BASED INDEX INSURANCE
    12. BIBLIOGRAPHY
    13. NOTES
  12. CHAPTER 7: Livestock Insurance
    1. 7.1 INTRODUCTION
    2. 7.2 SECTOR TRENDS
    3. 7.3 OVERVIEW OF RISK TRANSFER SOLUTIONS
    4. 7.4 STANDARD LIVESTOCK INSURANCE
    5. 7.5 EXTENDED LIVESTOCK INSURANCE
    6. 7.6 LIVESTOCK INDEX INSURANCE
    7. BIBLIOGRAPHY
    8. NOTES
  13. CHAPTER 8: Aquaculture Insurance
    1. 8.1 INTRODUCTION
    2. 8.2 SECTOR TRENDS
    3. 8.3 OVERVIEW OF RISK TRANSFER SOLUTIONS
    4. 8.4 ALL-RISK STOCK MORTALITY AND NAMED-PERIL AQUACULTURE INSURANCE
    5. 8.5 AQUACULTURE INDEX INSURANCE
    6. BIBLIOGRAPHY
    7. NOTES
  14. CHAPTER 9: Forest Insurance
    1. 9.1 INTRODUCTION
    2. 9.2 SECTOR TRENDS
    3. 9.3 OVERVIEW OF RISK TRANSFER SOLUTIONS
    4. 9.4 PLANTATION INSURANCE
    5. 9.5 CARBON REVERSAL INSURANCE
    6. 9.6 FIREFIGHTING COST INSURANCE
    7. 9.7 INDEX-BASED FOREST INSURANCE
    8. BIBLIOGRAPHY
    9. NOTES
  15. CHAPTER 10: Risk Transfer to Reinsurance Markets
    1. 10.1 INTRODUCTION
    2. 10.2 GLOBAL REINSURANCE MARKET
    3. 10.3 KEY CONCEPTS OF REINSURANCE
    4. 10.4 FORMS OF REINSURANCE
    5. 10.5 BASICS OF REINSURANCE PRICING
    6. BIBLIOGRAPHY
    7. NOTES
  16. CHAPTER 11: Risk Transfer to Capital Markets
    1. 11.1 INTRODUCTION
    2. 11.2 GLOBAL INSURANCE-LINKED SECURITIES MARKETS
    3. 11.3 OVERVIEW OF KEY PRODUCTS
    4. BIBLIOGRAPHY
    5. NOTES
  17. Acronyms and Abbreviations
    1. ORGANISATIONS AND INSTITUTIONS
    2. CONCEPTS AND PRODUCTS
  18. Index
  19. End User License Agreement

Product information

  • Title: Agricultural Risk Transfer
  • Author(s): Roman Marco Hohl
  • Release date: March 2019
  • Publisher(s): Wiley
  • ISBN: 9781119345633