Implications of within county yield heterogeneity for modeling crop insurance premiums

2012 ◽  
Vol 72 (1) ◽  
pp. 134-155 ◽  
Author(s):  
Joseph Cooper ◽  
Carl Zulauf ◽  
Michael Langemeier ◽  
Gary Schnitkey
Keyword(s):  
Crop Insurance ◽  
Insurance Premiums

scholarly journals Estimation of the Amount of Rice Crop Insurance Premium in the Citarum River Basin

2020 ◽  
Vol 1 (1) ◽  
pp. 33-39
Author(s):  
Nurfadhlina Abdul Hali ◽  
Muhammad Faiz Rifqi ◽  
Endang Soeryana
Keyword(s):  
River Basin ◽  
Crop Insurance ◽  
Crop Productivity ◽  
Insurance Premium ◽  
Rice Crop ◽  
Normal Curve ◽  
Mathematical Methods ◽  
Insurance Premiums ◽  
Productivity Data ◽  
Curve Method

Determination of crop insurance premiums in the Citarum River basin can be calculated by mathematical methods. One of the methods of calculation of the premium that is the normal curve methods with data on crop productivity is assumed to be Gaussian. In this thesis are discussed in crop insurance premium calculations Areas Citarum River basin West Bandung Regency with normal curve method with a significant level of coverage. These methods are used because data on crop productivity gained Gaussian. Normal curve method is used without using the assumption of coefficients of variation, and try for some level of coverage. Application materials used are rice crop productivity data in the Citarum River basin of West Bandung Regency in 2008-2014. This research resulted in the value of the rice crop insurance premiums for farmers in the area based on a certain level of coverage.

scholarly journals Rice crop insurance in Indonesia: adaptation to climate and farm production support

2021 ◽  
Vol 892 (1) ◽  
pp. 012076
Author(s):  
D Kusumaningrum ◽  
K Aldyan ◽  
V A Sutomo ◽  
D Saraswati ◽  
G Ariyan ◽  
...  
Keyword(s):  
Crop Insurance ◽  
Group Discussion ◽  
Rice Crop ◽  
Insurance Companies ◽  
Integration Scheme ◽  
Insurance Premiums ◽  
Local Agriculture ◽  
Financing Costs ◽  
Loan Risk ◽  
The Government

Abstract Indonesia’s Rice Crop Insurance (AUTP) scheme has successfully protected farmers from significant crop losses due to natural disasters. However, the current amount of AUTP’s compensation is still unable to accommodate farmer’s financing costs (i.e., unpaid micro-loan and its interests) to support crops production. This results in higher micro-loan risk and hinder the sustainability of farming enterprises. In this regard, the existing People’s Business Credit (KUR) should supposedly be accessible as a micro-loan source to help farmers fund their farms. This study has two objectives: (1) formulate an integration scheme between KUR and AUTP, and (2) determine the appropriate insurance premiums to meet the farmer’s operational and financing costs. This research used 100,000 Monte Carlo Simulations using lognormal distributions with assumptions based on the results of focus group discussion and in-depth interviews with farmer groups, the local Agriculture Service, and micro-loan distributors, as well as the data from the Ministry of Agriculture from the period of 2018–2020. Additionally, Individual Area Yield Index (I-AYI) policy and loss ratio is used to determine and evaluate the new integrated crop insurance premiums. The study revealed that the farmers expect affordable, accessible, and beneficial insurance products with premium subsidies bundled with KUR. Therefore, the government should develop an integration of crop insurance with KUR and determine the affordable premium calculations along with the insurance companies. Based on the simulation results, the total pure premium is estimated around IDR 1 million for a minimum KUR loan of IDR 8 million (suitable for farming costs).

scholarly journals Empirically Evaluating the Flexibility of the Johnson Family of Distributions: A Crop Insurance Application

2008 ◽  
Vol 37 (1) ◽  
pp. 79-91 ◽  
Author(s):  
Yue Lu ◽  
Octavio A. Ramirez ◽  
Roderick M. Rejesus ◽  
Thomas O. Knight ◽  
Bruce J. Sherrick
Keyword(s):  
Monte Carlo Simulation ◽  
Monte Carlo ◽  
Normal Distribution ◽  
Crop Yields ◽  
Crop Insurance ◽  
Performance Data ◽  
Insurance Premiums ◽  
Using Data ◽  
Johnson System ◽  
Family Of Distributions

This article examines the flexibility of the Johnson system of distributions by assessing its performance in terms of modeling crop yields for the purpose of setting actuarially fair crop insurance premiums. Using data from corn farms in Illinois coupled with Monte Carlo simulation procedures, we found that average crop insurance premiums computed on the basis of the Johnson system provide reasonably accurate estimates even when the data are normal or come from a non-normal distribution other than the Johnson system (i.e., a beta). These results suggest that there is potential for using the Johnson system to rate previously uninsured crops that do not have historical insurance performance data upon which to base premium calculations.

A yield model for use in determining crop insurance premiums

1992 ◽  
Vol 60 (1-2) ◽  
pp. 33-51 ◽  
Author(s):  
K.C. Abbaspour ◽  
J.W. Hall ◽  
D.E. Moon
Keyword(s):  
Crop Insurance ◽  
Yield Model ◽  
Insurance Premiums

scholarly journals Penentuan Harga Premium Asuransi Tanaman Sagu di Kabupaten Luwu Menggunakan Copula FGM

2020 ◽  
Vol 20 (2) ◽  
pp. 100
Author(s):  
Apriyanto Apriyanto
Keyword(s):  
Quantitative Data ◽  
Crop Insurance ◽  
Insurance Premium ◽  
Small Range ◽  
Land Area ◽  
Literature Study ◽  
Insurance Premiums ◽  
Premium Price ◽  
Applied Approach ◽  
The Ideal

Fokus utama penelitian ini adalah menghitung harga premium asuransi menggunakan Copula FGM. Adapun tujuan utama dari penelitian ini yaitu menentukan harga premium asuransi yang ideal untuk tanaman Sagu di Kabupaten Luwu. Penelitian ini merupakan penelitian terapan (applied approach) dengan menggunakan data kuantitatif untuk luas lahan dan hasil produksi Sagu di Kabupaten Luwu yang bersumber dari data Badan Pusat Statistik (BPS). Tahapan-tahapan yang dilakukan dalam penelitian ini dimulai dengan melakukan studi kepustakaan untuk mengkaji konsep dasar Copula dan konsep Copula FGM beserta sifat-sifatnya; mengumpulkan data kuantitatif luas lahan (X) dan hasil produksi Sagu (Y); mengukur dependensi antara luas lahan dan hasil produksi Sagu menggunakan Copula FGM; dan terakhir menentukan harga premium asuransi pertanian (crop insurance) yang ideal. Hasil yang diperoleh dari penelitian ini yaitu: (1) Harga premium yang ideal berada pada kisaran harga Rp. 24.000 - Rp. 60.000 per Ha; (2) Harga premium asuransi yang ideal untuk tanaman Sagu di Kabupaten Luwu sangat bergantung pada besarnya deductible; dan (3) Harga premium untuk deductible dengan range kecil menghasilkan harga yang relatif lebih murah dibandingkan range deductible yang besar.Kata kunci: Copula FGM; Crop Insurance; Premium Asuransi; Sagu. Determination of Insurance Premium Price for Sago Plant in Luwu Regency Using FGM CopulasABSTRACTThe main focus of this study is to calculate the price of insurance premiums using FGM Copulas. The main objective of this research is to determine the ideal prices of insurance premium for Sago plants in Luwu Regency. This research is an applied approach using quantitative data for land area and Sago production in Luwu Regency sourced from the Central Statistics Agency Data. The stages carried out in this study began by conducting a literature study to examine the basic concepts of Copulas, the concept of FGM Copulas and their properties; collect quantitative data on land area (X) and Sago Production (Y); measure dependencies between land area and Sago production using the FGM Copulas; and finally determine the ideal price of insurance premium for Sago plants. The results of this study are: (1) The ideal premium is in the range of IDR 24,000 to IDR 60,000 per Ha; (2) The ideal premium for Sago plant in Luwu Regency is very dependent on amount of the deductible; (3) The premium for deductibles with small range relatively lower than large range.Keywords: FGM Copulas; Crop Insurance; Insurance Premiums; Sago.

Estimating bivariate yield distributions and crop insurance premiums using nonparametric methods

2014 ◽  
Vol 46 (18) ◽  
pp. 2108-2118 ◽  
Author(s):  
Qiujie Zheng ◽  
H. Holly Wang ◽  
Qing Hua Shi
Keyword(s):  
Crop Insurance ◽  
Nonparametric Methods ◽  
Insurance Premiums

scholarly journals PENDEKATAN OPSI CASH-OR-NOTHING UP AND IN BARRIER UNTUK PENENTUAN NILAI PREMI ASURANSI PERTANIAN

2020 ◽  
Vol 4 (3) ◽  
pp. 557-565
Author(s):  
Yunita Wulan Sari ◽  
Gunardi Gunardi
Keyword(s):  
Crop Insurance ◽  
Extreme Rainfall ◽  
Barrier Option ◽  
Crop Failure ◽  
Insurance Premiums ◽  
Rainfall Index ◽  
Limit Value ◽  
Black Scholes ◽  
Negative Effect ◽  
Approach Method

Crop insurance is a type of insurance that provides protection to farmers who hold an insurance policy for losses due to crop failure. Extreme weather, especially rainfall, has been the main cause of the crop failure. Therefore, the type of crop insurance based on weather or rainfall must be developed and applied. This paper will discuss the cash-or-nothing up and in barrier option approach for determining insurance premiums where the risk of loss in terms of high rainfall, then compare it to the Black-Scholes option approach. In this approach, the claim limit is based on the rainfall index and the value of the barrier is determined according to the size of the extreme rainfall. We use cumulative rainfall data in the first subround in Sleman regency as a case study. The conclusions obtained are barrier value has a negative effect on the value of insurance premiums and claim limit value has a positive effect. Besides the premium value with this barrier option approach is cheaper than the Black-Scholes option approach, this approach method more interesting to apply because of the barrier value addition.

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