World Crop Reinsurance

Published Date

June 2010


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World Crop Reinsurance

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For most who practice it, crop reinsurance underwriting tends to be a part-time occupation, an activity that often may be usefully fitted in between the main renewal seasons for mainstream reinsurance business. Therefore, it is easy for practitioners not to fully grasp the finer points concerning the subject matter of what they are covering. Although usually classified as property business, structures and rating techniques, etc, need to be different to reflect the special characteristics of crop business.

PUBLISHED DATE: JUNE 2010
No. OF PAGES: 336

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However, this book is not intended to provide readers with any detailed descriptions of crop insurance underwriting or loss assessment, but rather seeks to provide an overview of the global crop insurance market and explain how reinsurance may be used to spread the risk assumed by the original insurer.

 

While there is no ‘secret formula’ to agricultural reinsurance, this book provides a meeting place for the ideas, anecdotes, philosophies and knowledge of the world’s talent pool in this specialist field, providing an excellent knowledge base and bringing many experts together.

1. THE CROPS

1.1 Wheat

1.2 other Field Crops

1.3 Horticultural Crops

1.3.1 Viticulture

1.4 Forestry

2. PERILS INSURED IN CROP INSURANCE POLICIES

2.1 Hail

2.2 Fire

2.3 Forest Fire

2.4 Other Perils

2.4.1 Frost

2.4.2 Wind

2.4.3 Drought and Lack of Rainfall

2.4.4 Excessive Rainfall

2.4.5 Flood

2.4.6 Diseases

2.4.7 Pests

2.4.8 Sharp fall in Temperature

 

3. POLICY COVERAGES

 

4. HISTORY OF CROP REINSURANCE

 

5. METHODS OF CROP REINSURANCE

5.1 Quota Share

5.1.1 Reinsurance Commission

5.1.2 Advantages of a Quota Share

5.1.3 Variable Quota Share and Surplus

5.1.4 Facultative Obligatory

5.1.5 Period of Cover

5.1.6 Setting Retentions and Limits

5.1.7 Accounting Principles

5.1.8 Claims Procedures

5.1.9 Limits

5.2 Facultative Reinsurance

5.3 Stop Less

5.3.1 Comparison with Quota Shares

5.3.2 Comparison with Catastrophe Excess of Loss

5.3.3 Setting the Deductible

5.3.4 Setting the Upper Limit of Cover

5.3.5 Definition of premium Income

5.3.6 Setting the Monetary Limits

5.3.7 Self-participation (Co-reinsurance)

5.3.8 Combining all the Elements of a Stop Less Treaty

5.3.9 Layering

5.3.10 'Reinstatement'

5.3.11 Claims Recoveries - a Case Study

5.4 Conclusion

 

6. THE PRICING OF CROP REINSURANCE

6.1 Proportional and Non Proportional Reinsurance

6.2 Pricing Crop Insurance

6.3 Pricing Proportional Reinsurance

6.3.1 Reinsurance Commissions

6.3.2 Proportional Pricing - Conclusion

6.4 Stop Loss Pricing

6.4.1 Volatility

6.4.2 Modelling

6.4.3 The Stop Loss Rating Process

6.4.4 Level of Stop Loss Deductible

6.5 Pricing Excess of Loss Covers (Forestry)

 

7 REINSURANCE MARKETS

7.1 US

7.1.1 Crop Hail Insurance

7.1.2 MPCI

7.2 Canada

7.2.1 The Reinsurance Market

7.2.2 Manitoba

7.2.3 Ontario

7.2.4 Saskatchewan

7.2.5 Alberta

7.2.6 British Columbia

7.2.7 Summary

7.3 Latin America

7.3.1 Mexico

7.3.2 Central America

7.3.3 South America

7.4 European Insurance Markets

7.5 France

7.5.1 Crop Insurance: Premium Volumes and Loss Ratios

7.5.2 Rating and Coverage

7.5.3 The Agricultural Calamity Fund

7.5.4 Contract Process

7.5.5 Reinsurance

7.6 Germany

7.6.1 Crop Insurance

7.7 Italy

7.7.1 Main Characteristics of the Italian Crop Market

7.7.2 The Perils

7.7.3 The Crops

7.7.4 Subsidies

7.7.5 The Regions

7.7.6 The Companies

7.8 Spain

7.8.1 Main Characteristics of the Spanish Crop Insurance System

7.9 Turkey

7.10 Ukraine

7.10.1 Main Features of Ukrainian Agricultural Crop Production

7.10.2 Perils

7.10.3 Description of the Ukrainian Crop Insurance Market

7.10.4 The Insurance Companies

7.10.5 Legislation and Government Subsidies

7.10.6 Issues Concerning Crop Insurance in Ukraine

7.11 Africa

7.12 Asia

7.13 China

7.14 India

7.15 Philippines

7.16 Australia and New Zealand

7.16.1 Australia

7.16.2 New Zealand

 

8 AREA YIELD AND WEATHER BASED CROP INSURANCE

8.1 Requirements for Multiple Risk Crop Insurance

8.2 The US Federal Crop Insurance Programme

8.3 Actuarial Performance of the Crop Insurance Programmes

8.4 The Index Insurance Alternative

8.5 Interest Index Insurance

8.6 Basis Risk

8.7 Summary of the Relative Advantages and Disadvantages of Index Insurance

8.8 Conclusion

 

9 AGRICULTURAL REINSURANCE MARKET

10 CROP REINSURANCE BROKERS

10.1 Functions and Objectives

 

11 CROP LOSS ADJUSTMENT SERVICES FOR REINSURERS

11.1 Product Development

11.2 Loss Assessment Procedures

11.3 Operational Programmes

11.4 Case Studies in Loss Adjustment

Colin Packham worked in various positions in insurance and reinsurance from 1962 to 1998, mostly with Mercantile & General Re in London and Sydney, but also with Swiss Re in both Zurich and Sydney. From 1991 to 1995 he was lecturer in Reinsurance at the University of Technology, Sydney, and until 2008 was a regular presenter of the Australian & New Zealand Institute of Insurance & Finance courses in Reinsurance. He organized a number of Crop Insurance Seminars in Sydney for both M&G Re and Swiss Re, and is the author of a number of publications. Since 1998 he has been a consultant specializing in reinsurance training and education, and crop insurance and reinsurance audits and advice.

 

 

Nigel has spent 30 years in property underwriting in the London Market and is currently working as a property specialist for the Performance Management Directorate of the Corporation of Lloyd’s.

For over ten years he was head of property treaty underwriting at Syndicate 2488 and Ace Tempest Re in London. He started his career at the Mercantile and General Reinsurance Company where he travelled to many overseas markets, including extended appointments in Mexico and Japan.

He has a degree in French and Spanish, is a Fellow of the Chartered Insurance Institute and is the co-author, with Professor Carter, of the fourth edition of ‘Reinsurance’.

 

Title: World Crop Reinsurance
Number of Volumes: 1
Number of Pages: 336
Product Code: WS1218K
ISBN: ISBN 13: 978-1-905331-96-3 (9781905331963), ISBN 10: 1-905331-96-7 (1905331967)
Published Date: June 2010
Binding Format: Hardback
Book Height: 250 mm
Book Width: 180 mm
Book Spine: 22 mm
Weight: 1.20 kg

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