Agricultural insurance ratemaking: development of a new premium principle

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MARC record
LDR  00000cab a2200000 4500
001  MAP20200004851
003  MAP
005  20200221140023.0
008  200217e20191202usa|||p |0|||b|eng d
040  ‎$a‎MAP‎$b‎eng‎$d‎MAP
084  ‎$a‎329
100  ‎$0‎MAPA20170005773‎$a‎Zhu, Wenjun
24510‎$a‎Agricultural insurance ratemaking: development of a new premium principle‎$c‎Wenjun Zhu, Ken Seng Tan, and Lysa Porth
520  ‎$a‎Determining the appropriate premium to charge for the underlying risk is central to delivering a sustainable agricultural insurance program. Though this is fundamental to all types of insurance, in agriculture this is a particularly challenging task given systemic risk, information asymmetry, and a number of multifaceted factors pertaining to the loss experience data, including scarcity and credibility. The objective of this article is to formally introduce premium principles to the agricultural insurance literature, with a focus on a new premium principle approach based on the multivariate weighted distribution. The multivariate weighted premium principle (MWPP) formalizes the reweighting of historical loss experience using auxiliary factors in order to refine the agricultural insurance pricing. These auxiliary factors may reflect systemic risk and include material information, such as economic and market conditions, weather, soil, etc. In the empirical study, a unique reinsurance data set from the province of Manitoba, Canada, is used to evaluate a number of potential premium principles. With the flexibility of the MWPP, the empirical results indicate that the MWPP approach can be a viable premium principle for pricing agricultural insurance. Furthermore, the MWPP redistributes premium rates and assigns increased loadings to higher risk layers, helping reinsurers manage their reserves and achieve improved sustainability in the long term
650 4‎$0‎MAPA20080578213‎$a‎Seguros agrarios
650 4‎$0‎MAPA20080581886‎$a‎Primas de seguros
650 4‎$0‎MAPA20080545260‎$a‎Riesgos
650 4‎$0‎MAPA20080585266‎$a‎Factores de riesgo
650 4‎$0‎MAPA20080589356‎$a‎Cálculo de la prima
650 4‎$0‎MAPA20080605865‎$a‎Ecuaciones matemáticas
650 4‎$0‎MAPA20080602437‎$a‎Matemática del seguro
651 1‎$0‎MAPA20080638337‎$a‎Estados Unidos
7001 ‎$0‎MAPA20160009729‎$a‎Tan, Ken Seng
7102 ‎$0‎MAPA20200003427‎$a‎Porth, Lysa
7730 ‎$w‎MAP20077000239‎$t‎North American actuarial journal‎$d‎Schaumburg : Society of Actuaries, 1997-‎$x‎1092-0277‎$g‎02/12/2019 Tomo 23 Número 4 - 2019 , p. 512- 534