FAO AGRICULTURAL SERVICES BULLETIN 159 Insurance of crops in developing countries by R.A.J. Roberts
FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS Rome, 2005
	Table of Contents

ISSN 1010-1365
ISBN 92-5-105299-9

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© FAO 2005

Contents

FOREWORD

1. INTRODUCTION

1.1 Target Readership
1.2 Key Introductory Points
1.3 Purpose
1.4 The Business of Insurance
1.5 Crop Insurance Today - the Global Picture
1.6 Crop Insurance Today - in some Developing Countries

Argentina
Brazil
Cyprus
India
Malaysia
Mauritius
Philippines
Syria
Windward Islands

2. GROWTH IN DEMAND FOR CROP INSURANCE PRODUCTS

2.1 Increasing Incidence of Crop Damaging Weather Events
2.2 Greater Commercialisation of Farming/Contract Farming
2.3 World Trade Organization Regulations
2.4 Classic Crop Insurance Products

2.4.1 Damage-based Products e.g. Hail/Named-peril Products
2.4.2 Yield-based Products, e.g. Multi-peril Crop Insurance (MPCI)

2.5 New Crop Insurance Products

2.5.1 Crop-revenue Insurance Products
2.5.2 Index-based Insurance Products

2.6 Accidental Introduction of Pests and Diseases
2.7 Food Safety and Environmental Protection Concerns

3. CROP INSURANCE: STEPS IN THE DEVELOPMENT PROCESS

3.1 Decision and Action Steps
3.2 Demand Assessment
3.3 Nature of the Insured Parties - Automatic or Voluntary Cover?
3.4 Key Perils/Risks

3.4.1 Production Risk Perils

Drought
Excessive rain
Flood
Windstorm
Frost
Hail
Sunburn (sunscald)
Snow
Pest and disease attack
Fire

3.4.2 Natural Resource Risks

3.5 Which Crops can be Insured?

3.5.1 Benefit/cost issues
3.5.2 Annual field crops
3.5.3 Perennial crops
3.5.4 Glasshouse crops
3.5.5 Forests

3.6 Loss Assessment Issues

3.6.1 A key design constraint
3.6.2 Compensatory growth
3.6.3 Salvage

3.7 Insurance Administration

3.7.1 Cost containment
3.7.2 Market identification
3.7.3 Product development
3.7.4 Marketing
3.7.5 Setting indemnity and premium levels: deductibles
3.7.6 Collecting premiums
3.7.7 Handling claims

3.8 Roles for Government and the Private Sector

3.8.1 The dilemma
3.8.2 Towards a solution

ANNEX

I. List of References
II. Note on Premium Calculations
III. Glossary of Common Insurance Terms

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