Risk theory tells us if an insurer can effectively pool a large number of individuals to reduce the total risk, he then can provide the insurance by charging a premium close to the actuarially fair rate. There is, however, a common belief that the risk can be effectively pooled only when the...

County-based group crop insurance is not effective to growers in counties with heterogenous production practice. A model-based cluster and classification method is developed to facilitate the information needed in the study of sub-county-zone-based crop insurance. Wheat yield data from Whitman,...

Risk theory tells us if an insurer can effectively pool a large number of individuals to reduce total risk, the insurer can then provide insurance by charging a premium close to the actuarially fair rate. However, a common belief exists that risk can be effectively pooled only when random loss...