Actuarial impacts of loss cost ratio ratemaking in U.S. crop insurance programs

Journal of Agricultural and Resource Economics

Volumn 36, Issue 1, 2011, Pages 211-228

  Woodard, Joshua D ^a   Sherrick, Bruce J ^b   Schnitkey, Gary D ^b  

^a TEXAS A AND M UNIVERSITY   (United States)

^b UNIVERSITY OF ILLINOIS AT URBANA CHAMPAIGN   (United States)

Author keywords

Actuarially fair; Crop insurance; Insurance rating; Loss cost ratio; Risk growth; Risk management agency; Yield trends

Indexed keywords

ZEA MAYS;

EID: 79958123266     PISSN: 10685502     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (24)

1. Atwood, J. A., S. Shaik, and M. J. Watts. "Are Crop Yields Normally Distributed? A Reexamination." Amer. J. Agr. Econ. 85,4(November 2003):888-902.
2. Babcock, B. A. "Corn Belt Contributions to the Crop Insurance Industry." Iowa Ag Review 14,2(Spring 2008): 1-3.
3. Babcock, B. A., C. E. Hart, and D. J. Hayes. "Actuarial Fairness of Crop Insurance Rates with Constant Rate Relativities." Amer. J. Agr. Econ. 86,3(August 2004):563-575. (Pubitemid 38958075)
4. Barnaby, G. A. "Would You Pay More in Premiums than the Maximum Indemnity Payment?" Kansas State Research and Extension, Dept. of Agr. Econ., Kansas State University, Manhattan, 30 September 2007. Online. Available at http://www.agmanager.info/crops/insurance/risk-mgt/m-html07/ABrates.asp.
5. Coble, K. H., T. O. Knight, B. K. Goodwin, M. F. Miller, and R. M. Rejesus. "A Comprehensive Review of the RMA APH and COMBO Rating Methodology." RMA Contract Report, Sumaria Systems, Inc., 2010. farmdoc. Farm Insurance Payments Simulator. University of Illinois at Urbana-Champaign, 2008. Online. Available at http://www.farmdoc.uiuc.edu/.
6. Federal Crop Insurance Corp. "Summary of Business." Online database, 2008. Available at http://www3.rma.usda.gov/apps/sob/.
7. Finger, F. "Revisiting the Evaluation of Robust Regression Techniques for Crop Yield Data Detrending." Amer. J. Agr. Econ. 92(2010): 1-7.
8. Garcia, O. "Simplified Method-of-Moments Estimation for the Weibull Distribution." New Zealand J. Forestry Sci. 11 (1981):304-306.
9. Glauber, J. W. "Crop Insurance Reconsidered." Amer. J. Agr. Econ. 86,5(November 2004): 1179-1195. (Pubitemid 40019953)
10. Goodwin, B. K. "Premium Rate Determination in the Federal Crop Insurance Program: What Do Averages Have to Say About Risk?" J. Agr. and Resour. Econ. 19,2(December 1994):382-395.
11. Hogg, R. V., and S. A. Klugman. Loss Distributions. Toronto, Ontario: John Wiley & Sons, 1984.
12. Hollander, M., and D. Wolfe. Non-parametric Statistical Methods, 2nd ed. Wiley Series in Probability. New York: John Wiley & Sons, 1999.
13. Josephson, G. R., R. B. Lord, and C. W. Mitchell. "Actuarial Documentation of Multiple Peril Crop Insurance Ratemaking Procedures." Prepared for USDA/Risk Management Agency by Milliman & Robertson, Inc., August 2000. Online. Available at http://www.rma.usda.gov/pubs/2000/000801-mpci- rate.pdf.
14. Lanclose, K. Presentation on Crop Insurance Developments. Presented at joint annual meetings of AAEA, CAES, and WAEA, Denver, CO, 25-27 July 2010.
15. Pichon, A. "Modeling Farm-Level Yield Distributions." Unpub. M.S. thesis, Dept. of Agr. and Consumer Econ., University of Illinois at Urbana-Champaign, 2002.
16. Schnapp, F., J. Driscoll, T. Zacharias, and R. Josephson. "Ratemaking Considerations for Multiple Peril Crop Insurance." Report prepared for USDA/Risk Management Agency, 2000.
17. Sherrick, B. J., F. C. Zanini, G. D. Schnitkey, and S. H. Irwin. "Crop Insurance Valuation Under Alternative Yield Distributions." Amer. J. Agr. Econ. 86,2(May 2004):406-419. (Pubitemid 38546643)
18. Skees, J., and M. Reed. "Rate Making for Farm-Level Crop Insurance: Implications for Adverse Selection." Amer. J. Agr. Econ. 68,3(August 1986):653-659.
19. Smith, V. H., and B. K. Goodwin. "Private and Public Roles in Providing Agricultural Insurance in the United States." In Public Insurance and Private Markets, ed., J. R. Brown. Washington, DC: AEI Press, 2010.
20. Swinton, S. M., and R. P. King. "Evaluating Robust Regression Techniques for Detrending Crop Yield Data with Nonnormal Errors." Amer. J. Agr. Econ. 73(1991):446-451.
21. Tannura, M. A. "Weather, Corn and Soybean Yields, and Technology in the U.S. Corn Belt." Unpub. M.S. thesis, Dept. of Agr. and Consumer Econ.,University of Illinois at Urbana-Champaign, 2007.
22. Woodard, J. D., and P. Garcia. "Weather Derivatives, Spatial Aggregation, and Systemic Insurance Risk: Implications for Reinsurance Hedging." J. Agr. and Resour. Econ. 33,1 (April 2008):34-51. (Pubitemid 351642620)
23. Woodard, J. D., G. D. Schnitkey, B. J. Sherrick, N. Lozano, and L. Anselin. "A Spatial Econometric Analysis of Loss Experience in the U.S. Crop Insurance Program." J. Risk and Insurance (2011, forthcoming).
24. Yu, T., and B. A. Babcock. "Are U.S. Corn and Soybeans Becoming More Drought Tolerant?" Amer. J. Agr. Econ. 92,5(2010):1310-1323.