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Indemnity Payments in Agricultural Insurance: Risk Exposure of EU States

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  • Osman Gulseven
  • Kasirga Yildirak

Abstract

This study estimates the risk contributions of individual European countries regarding the indemnity payments in agricultural insurance. We model the total risk exposure as an insurance portfolio where each country is unique in terms of its risk characteristics. The data has been collected from the recent surveys conducted by the European Commission and the World Bank. Farm Accountancy Data Network is used as well. 22 out of 26 member states are included in the study. The results suggest that the EuroMediterranean countries are the major risk contributors. These countries not only have the highest expected loss but also high volatility of indemnity payments. Nordic countries have the lowest indemnity payments and risk exposure.

Suggested Citation

  • Osman Gulseven & Kasirga Yildirak, 2020. "Indemnity Payments in Agricultural Insurance: Risk Exposure of EU States," Papers 2003.05726, arXiv.org.
    • Handle: RePEc:arx:papers:2003.05726
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    References listed on IDEAS

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    1. Unknown, 2008. "Institute of Agricultural Economics," Economics of Agriculture, Institute of Agricultural Economics, vol. 55(3).
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    3. Shiva S. Makki & Agapi Somwaru, 2001. "Farmers' Participation in Crop Insurance Markets: Creating the Right Incentives," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 662-667.
    4. Mario Miranda & Dmitry V. Vedenov, 2001. "Innovations in Agricultural and Natural Disaster Insurance," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 650-655.
    5. Olivier Mahul, 2001. "Optimal Insurance Against Climatic Experience," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 593-604.
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    Cited by:

    1. Vilhelm, V. & Špička, J. & Valder, A., 2015. "Public Support of Agricultural Risk Management – Situation and Prospects," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 7(2), pages 1-10, June.

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