The rating models for crop insurance involve conducting numerous objective risk analyses to determine the parameters of the potential threats to crop production, the frequency and severity of the threats, and the expected losses. As part of this work, significant issues have arisen in identifying appropriate data. Many situations have arisen where data availability was limited or nonexistent, and still, the data requirements for the analysis must be identified. In situations where data sources were not available, AgriLogic has overcome these challenges by soliciting individual producers and corporations to supplement data to provide appropriate parameters. Once the data is acquired, the informatoin is then routed into a rating methodology which determines the premium rates for the insurance program.

The rating methodology for each program must factor in the specific variables for the perils confronting each crop, type, and practice. The methodology must provide the ability to add and subtract different hazards and at various stages in the crop production cycle. Regional and climatic differences must also be accounted for in the methodology. An example of modeling risk from aggregations of specified crop hazards is provided in the figure below.

AgriLogic also has experience in assessing the risk for a broad range of perils beyond those commonly considered.   Some of these include hazards such as Asiatic Citrus Canker, Pierce’s Disease, Crown Gall, Karnal Bunt, and numerous fruit fly species, as well as a host of other invasive species.