Weather-risk transactions for agricultural applications - derivatives and insurance In the context of the weather market, weather risk is defined as the financial exposure that an entity—an individual, government, or corporation—has to an observable weather event or to variability in a measurable weather index that causes losses to either property or profits. Because this risk can be measured through either an observable weather event or a weather index, it is possible to transfer this risk from a client to an organization interested in taking on that risk in the form of a weather risk-management product.
Weather data for agricultural insurance - Space-based Sub-system Observing Networks Since the 1980s operational satellites have been providing global meteorological observations, and advances in spacecraft and sensor technologies have lead to major investments in space-based observing systems in the 1990s resulting in an unprecedented amount and diversity of atmospheric data today. Meteorological satellite data are unique and have important differences compared to data collected by surface-based systems. The type of orbit and the characteristics of the instruments have important implications for how space-based data can be used for weather-related applications.
Weather data for agricultural insurance - surface-based observation networks Meteorological observations are made by a variety of instruments at different types of stations. The primary surface network comprises synoptic stations (land- or sea-based), upper-air synoptic stations and in some cases aircraft meteorological stations. Synoptic simply means observing a wide variety of variables to give a general picture of the climate at a given station. A secondary and more specialized set of stations includes aeronautical, climatological, agro-meteorological stations and research stations, which typically have technical specifications based on the primary purpose and application for the data.
USA - The new common crop insurance policy For several years the Risk Management Agency (RMA) of the United States Department of Agriculture (USDA) and the various private insurance companies that deliver crop insurance protection to millions of producers across the country have been negotiating a major overhaul of the basic policy that is used for most insurable crops. The new Common Crop Insurance Policy, sometimes known as COMBO, will go into effect for crops insured in 2011. Covered crops include corn, soybeans, grain sorghum, wheat, barley, cotton, rice, canola and sunflowers.
Crop Insurance Basics - US Anything can be insured today; let it be a cat, car, or crop. Crop insurance has been in existence since the early 1930s. Federal crop insurance was established to combat the effects of the Great Depression and the Dust Bowl. If a farmer were to pick out crop insurance today, they would have many different options to choose from. Crop insurance provides a safety net for farmers by reimbursing them due to revenue or yield diminishing problems for their crops. The two categories of crop insurance are yield-based and revenue. These are a few examples of yield-based insurance policies according to the Risk Management Agency (RMA) of the USDA.
Agricultural insurance portfolio management - reinsurer's suggestions for Ukraine It is considered that big well spread ag insurance portfolio is more stable and profitable than small localised one. Preferably the portfolio should consist of average size accounts/policies (ag enterprises). Big amount of small policies will increase the portfolio servicing cost (monitoring, loss adjustment), insurance of big ag holdings can increase the risk accumulation and fraud possibility (for some Ukrainian holdings). Better to start building the portfolio of the “standard” most common in the market products = “mass products” (e.g. subsidized crop insurance). The non standard “experiments” (vegetable insurance, flower insurance) are acceptable when the main part of the portfolio is sustainable enough and ag department has enough experience.
Ukraine - Corn damaged by hail (fotos) Hail damaged crops in Cherkassy oblast on July 3 and 13, 2009. Corn got significant damage however forage corn was less affected. According to insurance experts, the farmers will see 10-15% of yield drop, in the worst case damage will reach 20%. Stil the farmers were lucky as cobs were formed and the plants continue caring for grain.
Assessing hail-damaged corn Recent hailstorms and high winds in this area have caused questions about the options farmers have for crop management during the rest of the growing season. Hail decreases yields by reducing stands as well as destroying leaves. The yield loss severity depends on the crop’s growth stage. Corn has an advantage over soybeans early in the season when hailed since corn’s growing point remains below ground until about the sixth-leaf stage. Young plants at this stage are not killed if only leaf or stem tissue is lost.
SystemAgro – Optimum conditions for multi-peril crop insurance The various systems of multi-peril crop insurance (MPCI) throughout the world are subject to different conditions which determine whether and to what extent a particular system is successful in the long term and can thus serve to stabilise the agricultural sector. SystemAgro identifies and specifies the optimum conditions for such success.
Agribusiness corporates can insure against volatility in grain volumes Major players in the agricultural supply chain have longstanding experience in managing risk, ranging from currency and price risk hedging to insuring against property and liability claims. Despite these efforts, earnings in some segments are still subject to substantial volatility, making it difficult to produce a steady return on equity, to create steady cash flows and to be able to invest in new ventures.
30.10.2011 Where the margin is 2012 - conference in Moscow The Conference "Where the margin is" will be held on January 31, 2012, in MOscow in the Radisson Slavianskaya Hotel. The conference is meant for agricultural producers, inputs manufacturers, dealers and distributors, financiers, insurers, agribusiness investors, policy makers. 29.05.2011 Seminar on Index based Weather Insurance - India, July 25-27, 2011 Crop insurance (yield and weather based) is a specialty insurance, the technical nuances of which need to be clearly understood by all the stakeholders. The programme aims at enhancing the understanding of critical issues related to these specialised products and providing a comprehensive technical understanding of the weather index insurance covers in India.
Position of the administration of www.agroinsurance.com web-site may not coincide with the position of the authors. Administration does not bear responsibility for information contained in the documents created by third parties and placed at this web-site. For replication and use of copyrighted documents the users should contact administration.
Back
Top
Events
