Weather risk affects agricultural production. Index insurance has been proposed to hedge against severe weather risk, but large basis risk and low demand accompany current piecewise-linear index insurance contracts. We propose embedding a neural network-based optimization scheme into an expected...

Determining the appropriate premium to charge for the underlying risk is central to delivering a sustainable agricultural insurance program. While this is fundamental to all types of insurance, in agriculture this is a particularly challenging task given systemic risk, information asymmetry, and...

The focus of this paper is on predictive analytics regarding data scarcity and credibility, which are major difficulties facing the agricultural insurance sector often due to limited loss experience data for those infrequent, but, extreme weather events. A new relational data-matching model is...

PurposeThe purpose of this paper is to propose an improved reinsurance pricing framework, which includes a crop yield forecasting model that integrates weather variables and crop production information from different geographically correlated regions using a new credibility estimator, and closed...