Guidelines on crop insurance premium adjustment for individual farmers Experience discounts and surcharges are calculated using individual loss experience and the comparison to area losses. Crop Insurance calculates premium discounts and surcharges by comparing the claim received to the total premium (net of experience discount) paid by the producer and governments. When an increase in the number of losses is experienced, the discount is reduced and may even result in a surcharge.
Malawi - insurance for tabacco Tobacco as a cash crop is at the centre of every bona fide Malawian, whether one grows the crop or not. The insurance fraternity offers two operative insurance covers devised to protect tobacco leaf right from the field to the market. These covers are hail and fire farming insurances. Hail insurance covers tobacco leaf while growing in the field against rainfall-related risks, commonly known as wet acts of God perils. Cover commences from the twenty second day after transplanting seedlings and ends when the grower starts plucking the leaf from the stem. Insurance provided is against damage to tobacco leaf resulting from hail, wind-storm and physical action of excessive rainfall. Losses due to water logging, drought, neglect and failure to follow established good farming husbandry are excluded.
Agricultural insurance in MesoAmerica: an opportunity to deepen rural financial markets Mesoamerican governments should consider supporting the development of the agricultural insurance market with great interest, but also with great caution. Public policies, as the vast international experience demonstrate, could also result in the opposite effect, making future natural catastrophes even worse. In Mesoamerica and especially in Central America, where public resources are scarce, programs should follow a strict analysis of the social opportunity costs of such public investments and the effects that these may have in distorting agriculture production decisions—and thus making the sector less competitive in the current trade liberalization environment. Thus public policy intended to support the development of the agricultural insurance market must start by layering the risks and addressing the necessary public goods and services for buyers and sellers of such instruments to expand the market and innovate to accelerate expansion. Policy areas that top the list are an adequate
Piloting Index-Based Livestock Insurance in Mongolia In 2001, the Government of Mongolia (GoM) requested assistance from the World Bank to address an ageless problem –frequent death rates in the livestock population. While the country had a social livestock insurance program during the communist period, several attempts to pass a livestock insurance law in recent years have failed. In 2001, an index-based insurance program using mortality rates by species and soum (i.e., county) was recommended, based on significant concerns regarding informational asymmetries and extreme monitoring costs that could would accompany a traditional livestock insurance program in the vast open spaces of Mongolia. The core recommendations also involve a combination of self-insurance by herders, market-based insurance and social insurance. Given that this is a novel approach to a significant problem in Mongolia, the GoM was persuaded to begin a three year pilot program in three provinces of Mongolia – Bayankhongor, Uvs and Khenti, starting with sales in the sp
Moldova - crop insurance system and development problems In first half of 2006 the insurance companies signed only 28 crop insurance contracts. The crops were insured at the total area of 4,5 thousand hectares. During the second half of the year the crop insurance campaign was more dynamic. The farmers insured winter crops though mostly against low temperatures. According to the preliminary results, the farmers signed about 160 agicultural insurance contracts in 2006.
Conceptual Considerations in Developing an Income Insurance for European Farmers Price and production risks in European agriculture are likely to increase in the future. Present agricultural risk markets to deal with price and production risks are limited in scope. In this context, this paper discusses the feasibility of a form of income insurance for crop and livestock farmers in Europe which provides more extended protection. Alternative income insurance designs and related problems of asymmetric information are discussed. These problems lead to the recommendation that there are opportunities for revenue insurance schemes for field crops to begin testing income insurance in Europe. In particular area yields and observed spot market or futures market prices could be used initially. A Monte-Carlo simulation model illustrates the problems with respect to the use of individual farm yield data, and the sensitivity of impact and cost of insurance schemes to price and yield variability, correlations and insurance design.
Is Area Yield Insurance Competitive with Farm Yield Insurance? Crop farmers who purchase area yield insurance contracts are exposed to geographic basis risk. If a farmer suffers a yield loss when the area does not, the farmer’s loss will not be indemnified by the area yield insurance contract. For this reason, some have suggested that farmers will always prefer farm yield insurance contracts to area yield insurance contracts. The empirical analysis presented here suggests that this is not always true for the actual farm yield and area yield insurance contracts available to corn and sugar beet producers in the U.S.
The International Conference “Agricultural insurance as a tool for risk management”, which took place in Madrid on 15-17 November 2006, was a multinational forum for meeting and discussion between the various institutions and organizations interested in this model of agricultural risk management, as well as an opportunity for the exchange of experience between the participating countries and institutions, and it will serve to promote the implementation of common actions to help improve the protection of the agricultural sector.
The participants at the Conference, which was attended by some 900 experts and specialists from 42 countries, were able to gain an in-depth knowledge of the existing experience of risk management through various insurance models.
The discussion at the Conference focused primarily on aspects relating to the coverage of risks arising from adverse weather conditions and other natural phenomena, but an analysis was also made of the current situation as regards so-
Report on Specialty Crop Insurance - executive summary This Report on Specialty Crop Insurance provides an overview of the progress made by the Federal Crop Insurance Corporation (FCIC) in research and development of innovative risk management products and the progress made by FCIC in increasing the use of FCIC's risk management products by producers of specialty crops, by small-and moderate-sized farms, and in areas that are underserved, as determined by the Secretary.
This discussion paper considers insurance as a possible instrument of farm income stabilization and compares several crop insurance products with respect to their applicability in a transition economy using the case of Kazakhstan. The analysis is based on a qualitative evaluation as well a quantitative assessment of selected insurance products. The qualitative analysis reviews the available literature on the topic. The quantitative assessment completes the comparison introducing the findings of a numerical analysis of farm and weather data.
Report is published with the permission of the author and IAMO.
25.03.2008 Ukraine - Agricultural insurance seminar was conducted on March 18 for specialists of Providna insurance company. Seminar on agricultural insurance was conducted on March 18, 2008 for the specialists of insurance company Providna. Participants were trained on basics of agricultural insurance, specifics of crop and livestock insurance, principles of survey and loss adjustment. Training event was prepared by the experts of IFC Agri-insurance Development Project 27.10.2007 Global Animal Health Initiative: the Way Forward” in collaboration with the FAO at the World Bank Headquarters in Washington DC (USA), October 9, 10 and 11 2007. The World Bank and the World Organisation for Animal Health (OIE) co-organised a Conference on “Global Animal Health Initiative: the Way Forward” in collaboration with the FAO at the World Bank Headquarters in Washington DC (USA), October 9, 10 and 11 2007. 123 participants coming from international and regional organizations, representatives of governments of developing and developed countries from the five continents, and the private sector, stressed the importance and urgency of improving the governance and infrastructure worldwide in the field of veterinary zoonoses and animal diseases prevention and control mechanisms, as well as private-public partnership in the implementation of specific programs directed to animal health.
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The World Bank and the World Organisation for Animal Health (OIE) co-organised a Conference on “Global Animal Health Initiative: the Way Forward” in collaboration with the FAO at the World Bank Headquarters in Washington DC (USA), October 9, 10 and 11 2007. 123 participants coming from international and regional organizations, representatives of governments of developing and developed countries from the five continents, and the private sector, stressed the importance and urgency of improving the governance and infrastructure worldwide in the field of veterinary zoonoses and animal diseases prevention and control mechanisms, as well as private-public partnership in the implementation of specific programs directed to animal health.
