Agricultural Risk Transfer

Gain a holistic view of agricultural (re)insurance and capital market risk transfer

Increasing agricultural production and food security remain key challenges for mankind. In order to meet global food demand, the Food and Agriculture Organisation estimates that production has to increase by 50% by 2050 and requires large investments. Agricultural insurance and financial instruments have been an integral part to advancing productivity and are becoming more important in increasingly globalized and specialized agricultural supply chains in the wake of potentially more frequent and severe natural disasters in today’s key producing markets.

Underwriting, pricing and transferring agricultural risks is complex and requires a solid understanding of the production system, exposure, perils and the most suitable products, which vastly differ among developed and developing markets. In the last decade, new insurance schemes in emerging agricultural markets have greatly contributed to the large growth of the industry from a premium volume of US$10.1 billion (2006) to US$30.7 billion (2017). This growth is bound to continue as insurance penetration and exposure increase and new schemes are being developed. Agricultural (re)insurance has become a cornerstone of sovereign disaster risk financing frameworks.

Agricultural Risk Transfer introduces the main concepts of agricultural (re)insurance and capital market risk transfer that are discussed through industry case studies. It also discusses best industry practices for all main insurance products for crop, livestock, aquaculture and forestry risks including risk assessment, underwriting, pricing, modelling and loss adjustment.

• Describes agricultural production risks and risk management approaches
• Covers risk transfer of production and financial risks through insurance and financial instruments
• Introduces modelling concepts for the main perils and key data sources that support risk transfer through indemnity- and index-based products
• Describes risk pricing and underwriting approaches for crop, livestock, aquaculture and forestry exposure in developed and developing agricultural systems
• Become familiar with risk transfer concepts to reinsurance and capital markets
• Get to know the current market landscape and main risk transfer products for individual producers, agribusinesses and governments through theory and comprehensive industry case studies

Through Agricultural Risk Transfer, you’ll gain a holistic view of agricultural (re)insurance and capital market solutions which will support better underwriting, more structured product development and improved risk transfer.

DR. ROMAN MARCO HOHL is one of the best-known agricultural reinsurance underwriters in the industry. He has worked on most primary aspects of agricultural risk transfer, including work for reinsurance companies such as Partner Re, Converium and Swiss Re. With these companies, he built agricultural underwriting teams and developed new insurance schemes. He also led the development of agricultural risk models for India and China at the Asia Risk Centre, a leading agricultural risk modelling company which is now part of Risk Management Solutions.
Having worked in Singapore for 6 years and been at the forefront of the development of agricultural insurance in China, India and Southeast Asia Dr. Hohl has a deep understanding of the challenges of emerging markets. He has held various advisory appointments, including with the World Economic Forum (food security in Southeast Asia) and the Monetary Authority of Singapore (catastrophe risk assessment). He has also served as adjunct professor and deputy director at the Institute of Catastrophe Risk Management (ICRM) of the Nanyang Technological University in Singapore.
He currently supports the industry through advisory mandates including work for the International Finance Corporation (World Bank Group) in developing index- based risk transfer solutions. Dr. Hohl also collaborates with the University of Wisconsin-Madison (USA) and the National University of Singapore on modelling agricultural risks, food security and risk transfer.
Roman holds a PhD in Geoscience (Atmosphere) from the University of Fribourg (Switzerland). Research from his PhD thesis was used to develop the first probabilistic hail model for the European insurance industry. He has contributed numerous articles to research journals and the risk transfer media, including television interviews.

Praise for Agricultural Risk Transfer " Agricultural Risk Transfer is an outstanding source of technical information combined with real-world experience by a seasoned industry expert and should be in the bookshelf of every professional in the agricultural (re)insurance industry. References to numerous industry case studies and links to opensource data nicely facilitate the understanding of the key concepts." --Dr Lambert Muhr, Head (Agriculture North- and Latin-America), Munich Re (Germany) "This volume is an important addition to the growing literature on agricultural risk management. It comprehensively synthesizes a host of relevant issues related to both mature and emerging agricultural markets. Agricultural Risk Transfer is a great resource for researchers and students seeking to gain deeper insight into how insurance and other financial instruments can stimulate investment in agriculture by transferring catastrophic risks out of local areas and into global markets." --Prof Barry Barnett, Chair, Department of Agricultural Economics, University of Kentucky (USA) "Risk transfer is a crucial element of disaster risk finance and an important instrument for the sustainable rural development and financial inclusion. This book summarizes all key concepts of it and comes right in time as the implementation of more agricultural (re)insurance and capital market risk transfer solutions is needed more than ever in the wake of the increasing adverse impact of climate change." --Thomas Kessler, Principal Finance Specialist (Disaster Insurance), Asia Development Bank (Philippines) "Through its holistic approach and case studies, Agricultural Risk Transfer forms the ideal basis for regulators and government agencies to approach and integrate agricultural risk transfer into national risk management frameworks." --Wang Qi, Director, Agriculture Division, Property & Casualty Department, China Banking and Insurance Regulatory Commission (China) "Insurance-linked securities offer interesting opportunities for the agricultural sector - this book comprehensively analyses and illustrates how cat bonds, industry loss warranties and other capital market instruments can be applied to agricultural risks." --Dr Herv

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