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Livestock mortality catastrophe insurance using fatal shock process

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  • Pai, Jeffrey
  • Ravishanker, Nalini

Abstract

A major problem facing livestock producers is animal mortality risk. Livestock mortality insurance is still at the initial stages, and premium computation approaches are still relatively new and will require more research. We study multi-peril mortality insurance covering the death of livestock in Canada due to a number of natural causes and animal diseases. The coverage includes diseases that must be reported to the CFIA (Canadian Food Inspection Agency). When a Federal reportable disease (FRD) occurs, the CFIA orders the slaughter of animals. A general model to compute premiums, based on actuarial approaches, has been developed for mortality insurance incorporating FRD. This model can be applied to hogs, cattle, and poultry, and is designed to cover all stages of livestock production.

Suggested Citation

  • Pai, Jeffrey & Ravishanker, Nalini, 2020. "Livestock mortality catastrophe insurance using fatal shock process," Insurance: Mathematics and Economics, Elsevier, vol. 90(C), pages 58-65.
    • Handle: RePEc:eee:insuma:v:90:y:2020:i:c:p:58-65
    DOI: 10.1016/j.insmatheco.2019.11.001
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    References listed on IDEAS

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