Ag Risk Transfer
50
_________ _______________ from individuals, corporations and government entities to (re)insurers and capital markets is a proven concept to sustainably manage systemic risks from natural and man-made disasters
Risk transfer
What is the main risk for areas with high forestation?
Wildfires
What is holistic ag risk management?
The incorporation of many tools to mitigate risk
Demand for livestock products is project to increase ____% by 2050
70
Insurance is based on key concepts that evolved around (2):
•The insurability of risks
•Risk management and risk pricing
Of the major ag perils, which one occurs most often?
Floods
Production risks are mostly managed through risk transfer to:
(re)insurance markets
According to a chart on loss probability/severity we studied in class, what sector stands to loose the most in agriculture?
Producers
What country has the highest gross written premium amounts in the world? What was the amount in 2016?
4.7 trillion
What does ENSO stand for?
El Nino Southern Oscillation
The main price hedging instruments include (4):
•Forward contracts
•Futures
•Options
•Swaps
What two areas are some of the largest risks in the ag sector?
Production and Market risk
In the US, what percent does ag insurance constitute of the global GWP in 2016?
0.6%
In the row crops, typically it is not the drought that causes damage, it is _______________
Heat stress
What continent has realized the majority of the large growth in ag insurance in the world?
Asia
Ag risk strategies can be divided into these four categories-
Mitigation to limit the adverse impact
Transfer of the financial consequences to a third party
Coping to manage financial consequences
Prevention
Risks can be divided into 2 categories and 2 sub-categories. What are they?
Categories-Static risks, Dynamic risks
Sub-Speculative risks, Pure risks
____ _______ can cause 22-24% negative impact and 30-36% positive impact on harvested areas worldwide.
El Nino
What year was the most costly drought in US history?
What was the total damage amount?
2012, 20 billion