Modeling frost losses : application to pricing frost

Recurso electrónico / electronic resource
Collection: Articles
Title: Modeling frost losses : application to pricing frost / Hirbod Assa, Meng Wang, Athanasios A. PantelousAuthor: Assa, Hirbod
Notes: Sumario: The main objective of this article is to model the losses caused by frost events and use it to price frost insurance. Since the data on frost events are either unavailable or rarely available, we have chosen to obtain a model for frost losses based on temperature by using some fundamental agricultural engineering findings on frost damage. The main challenges in modeling frost loss variables are, first, the nonlinearity of the frost losses with respect to the temperature and, second, the fruit resistance to the first few hours of low temperature. We address both issues when introducing our frost loss variable. Then after finding the loss model, we use it to price frost insurance for a general family of insurance contracts that do not generate any risk of moral hazard. In particular, we will find the premiums of stop-loss policies for losses to citrus fruits using Value at Risk, Conditional Value at Risk, and Wang's premium based on temperature data from San Joaquin Drainage in California.Related records: En: North American actuarial journal. - Schaumburg : Society of Actuaries, 1997- = ISSN 1092-0277. - 05/03/2018 Tomo 22 Número 1 - 2018 , p. 137-159Materia / lugar / evento: Cálculo actuarial Matemática del seguro Riesgos meteorológicos Pérdidas Heladas Influencia climática Seguros agrarios Tarificación Other authors: Wang, Meng
Pantelous, Athanasios A.
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