Munich Re Licenses AIR’s Updated Crop Insurance Models for the United States and China

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BOSTON, Aug. 7, 2013 — AIR Worldwide (AIR) today announced that it has updated its Multiple Peril Crop Insurance (MPCI) Models for the United States and China. These are weather-based models that estimate underwriting gains and losses based on crop yield probabilities in the context of current conditions. Munich Re, a leading global reinsurer, has licensed the updated models to enhance its risk management capabilities for its catastrophe-exposed agricultural treaties. “The risk associated with agricultural insurance portfolios is extremely complex, which makes them challenging for insurance and reinsurance carriers participating…

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USDA Risk Management Agency approves 2012 pilot insurance for pistachio crops

The USDA Risk Management Agency (RMA) has announced the start of a new pilot pistachio crop insurance that will start with the crop year in 2012. The Pistachio Crop Insurance Program will make coverage accessible to 21 California counties, as well as one in New Mexico and two in Arizona. The names of the counties where the insurance will be available will soon be announced. The length of the pilot program is anticipated to be two years and the policy will be production based. The program itself received its initial…

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AIR Worldwide Launches Multiple Peril Crop Insurance Model for China

Catastrophe risk modeling firm AIR Worldwide (AIR) released the industry’s first Multiple Peril Crop Insurance (MPCI) Model for China. The new model provides a fully probabilistic approach for determining the likelihood of losses to the country’s major crops: corn, cotton, rapeseed, rice, soybeans, and wheat. The model captures the significant effects that weather-related perils have on each crop during the growth stage. This detailed information will help companies better prepare for and understand the exposure they carry based on China’s specific insurance programs, which tend to vary by province. “China…

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Agriculture Secretary recommends changes to nation’s crop insurance system

Agriculture insurance is becoming a major issue in the U.S. Federal legislators are currently working on a new bill that would reform the crop insurance system, but have yet to define any major benefits that should be awarded to farmers. U.S. Agriculture Secretary Tom Vilsack has issued recommendations to lawmakers, noting that more emphasis should be put on natural disasters and other environmental factors when reforming the insurance system. Vilsack believes that farmers will benefit most from policies that help them recover from extreme flood events or severe droughts. An…

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The changing face of federal crop insurance

Bill Murphy, an administrator at the Risk Management Agency (RMA) has announced that the Federal Crop Insurance program will be undergoing some positive changes in the near future. Murphy was present at the Big Iron Farm Show in West Fargo and spoke to the crowd about the current year’s issues as well as changes to the program. Not all of the news was good, as Murphy did need to discuss the unprecedented number of catastrophes in 2011 that left farmers hurting this year; from the overly wet soil in North…

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Agricultural groups support crop insurance, export promotion, and research

According to a North Dakota agricultural groups spokesperson, as the groups ready themselves for federal spending cutbacks, the next federal farm bill’s top priorities should be crop insurance, export promotion, and research. State director for U.S. Senator John Hoeven (R-N.D.), Shane Goettle, explained that there will be fewer resources with which to work. He added that it is very important that they keep a steady communication regarding the farm bill’s priority as they will be responsible for deciding what will need to be cut and what must be maintained. Goettle…

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New weather insurance market emerging

It is estimated that over 90% of crop loss is due to unexpected weather conditions. As the climate grows less predictable, the more agricultural businesses, and homeowners, are put at risk. WeathrBill, a company that sells insurance online to protect against unpredictable weather, has caught the eye of Google, who will be investing in the company for $42 million. WeatherBill uses algorithms to calculate risk factors when determining what policies are best for shoppers. Their Total Weather Insurance product is the first full-season protection program in the U.S. that addresses…

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