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Home Browse 2013 – Volume 115 Volume 115 - Issue 1

The effects of weather risks on micro-regional agricultural insurance premiums in Hungary

byKEMENY, Gabor,VARGA, Tibor,FOGARASI, JozsefandNEMES, Anna
  • Year 2013
  • Volume 115
  • Issue 1
  • Pages 8-15

This paper examines the effects of territorial differentiation of damage to wheat, maize, barley, sunflower and rapeseed production caused by drought and heavy rain. Our study evaluated the differences between LAU1 micro-regions in Hungary in the effects of the weather on agricultural production and found that there are extremely high differences in the probabilities of damage occurring. Therefore the design of agricultural insurance products should be based on different absolute deductibles and different insurance premiums for micro-regions. Furthermore, we found that within a micro-region individual producers face a very high diversity of risks which implies that in the long term only a bonus-malus system developed for individual agricultural producers can mitigate different risks, and that this can be the basis of a well performing risk management system that is suitable for a wide risk community.

Tags: crop yieldsinsurance premiumsmicro-regionsweather risks
  • http://dx.doi.org/10.7896/j.1305
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  • Scopus SJR (2022): 0.27
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  • ISSN (electronic): 2063-0476
  • ISSN-L 1418-2106

 

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Publisher Name: Institute of Agricultural Economics Nonprofit Kft. (AKI)

Publisher Headquarters: Zsil utca 3-5, 1093-Budapest, Hungary

Name of Responsible Person for Publishing:        Dr. Pal Goda

Name of Responsible Person for Editing:             Dr. Attila Jambor

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