Observatorio de I+D+i UPM

Memorias de investigación
Book chapters:
Insurance as an adaptation to climate variability
Year:2011
Research Areas
  • Crop production,
  • Economy
Information
Abstract
the agricultural insurance sector is also expanding in many countries.1 With almost no exceptions, growth in insured capital and coverage expansion has been coupled with intense public participation in the form of premium subsidies, public reinsurance, tax rebates, direct insurance participation and market regulatory frameworks. Many policy issues associated with the role of public agencies in agricultural insurance have been discussed in the literature for decades (Hazell et al., 1986; Cafi ero et al., 2007; Bielza et al., 2008a, 2008b; Meuwissen and Huirne, 2008; Mahul and Stutley, 2010). Many of the challenges that threaten the survival of insurance companies also aff ect agricultural insurance branches and companies. To the extent that agriculture will be profoundly transformed by climate change, the insurance sector will have to adapt to new risk profi les while at the same time keeps constantly innovating and seeking to off er new policies. This chapter has three goals. We fi rst summarize the most recent literature on insurance and climate change (CC), highlighting the major challenges involved and industrial reactions to what the sector seems to consider its major CC threats. The role of the government in off ering support and assistance in the event of a catastrophe is obvious and hardly contested, but the boundary separating business and government responsibilities is under discussion and is by no means fi xed. Our second goal is to summarize the main trends in agricultural insurance around the world. We describe the major approaches to insurance found in developed, emerging and developing countries. Our third goal is to provide quantitative results from two sets of analyses. In the fi rst, we report diff erences in premiums for current and future climates (IPCC A2 scenario, 2070?2100) for three cropping options and 12 sites in Spain. In the second set of results, we off er Monte Carlo simulations showing the extent to which errors in the yield distribution parameters or even density functions can aff ect actuarially fair premiums.
International
Si
Book Edition
Book Publishing
Edward Elgar Cheltenham, UK ? Northampton, MA, USA
ISBN
978-1-84980-116-4
Series
Book title
Handbook on Climate Change and Agriculture
From page
420
To page
445
Participants
  • Autor: Margarita Ruiz Ramos (UPM)
  • Autor: Maria Ines Minguez Tudela (UPM)
Research Group, Departaments and Institutes related
  • Creador: Grupo de Investigación: Grupo de Sistemas Agrarios (AgSystems)
  • Departamento: Producción Vegetal: Fitotecnia
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