Are there other forms of successful risk management against yield losses caused by the weather?
Yield risk management is not equal or not limited just to agricultural insurance. It includes agricultural technologies, forecasts, education, enhancement of specific knowledge, catastrophe risk transfer to the capital markets etc. However, agricultural insurance is the most professional and most efficient way of risk management that can protect against larger losses in the most suitable for farmers way and allows agricultural production to grow intensively. Without Public Private Partnership, private insurance can only successfully cover local, semi-systemic risks (for example, high frequency/low severity losses like hail) but not catastrophe risks. One of the examples of sustainable risk management forms can be mutuals. But they would need some catastrophe support from governments and/or reinsurers. Are the prevailing binding international rules and standards sufficient? As reinsurance underwriters we are dealing with insurance terms and conditions established in every given country.
