Centro de Documentacion de Fundación MAPFRE - Modelling the sustainability of the canadian crop insurance program : a reserve fund process under a public- private partnership model

MAP20170012672

Modelling the sustainability of the canadian crop insurance program : a reserve fund process under a public- private partnership model / Chengguo Weng... [et al.]

Sumario: The objective of this paper is to model the multilayer risk-sharing structure of the crop insurance system in Canada and, in doing so, is the first paper to provide a quantitative assessment of the sustainability of the program. A reserve fund process is developed using actual crop insurance data from Manitoba to model the surplus of the crop insurance company. Based on simulation, a number of actuarial risk measures are calculated, including mean surplus, expected shortfall, value at risk and conditional tail expectation. The results point to a potential fault with the design of the current risk-sharing structure, where the federalprovincial reinsurance fund premium rate is designed to increase as the mean surplus of the insurer becomes less. This potentially penalises an insurance company that purchases reinsurance, even though reinsurance can reduce the risk exposure to the federal government by more than 58 per cent in some cases

En: Geneva papers on risk and insurance : issues and practice. - Geneva : The Geneva Association, 1976- = ISSN 1018-5895. - 03/04/2017 Volumen 42 Número 2 - abril 2017 , p. 226-246

1. Gerencia de riesgos . 2. Seguro de cosechas . 3. Seguro agrario combinado . 4. Modelos actuariales . 5. Canadá . I. Weng, Chengguo .