Private Crop Insurers and the Reinsurance Fund Allocation Decision
Robert Dismukes and
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Joseph Glauber: U.S. Department of Agriculture
Risk and Insurance from University Library of Munich, Germany
This research investigates the strategic behavior of private crop insurance firms reinsured by the USDA through the Standard Reinsurance Agreement. This arrangement allows the private firm to strategically allocate individual policies into different risk sharing arrangements. Thus, firm earnings are conditioned upon accurately forecasting policy loss experience. Our analysis begins with models investigating the characteristics explaining the placement of policies into the assigned risk fund. Then a simulation model of the SRA is used to compare the post-SRA returns of actual firm allocations to two alternative allocation strategies based on aggregate models and a policy-level econometric forecasting model.
Keywords: Risk; insurance; reinsurance; logit; policy (search for similar items in EconPapers)
JEL-codes: Q18 (search for similar items in EconPapers)
Pages: 32 pages
New Economics Papers: this item is included in nep-agr, nep-cmp and nep-ias
Note: Type of Document - pdf; pages: 32
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Journal Article: Private Crop Insurers and the Reinsurance Fund Allocation Decision (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpri:0506003
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