Copula-Based Rate Determination of Crop Revenue Insurance

A Case Study of Early Indica Rice in Hu’nan Province

DOI

10.2991/aebmr.k.201111.007How to use a DOI?

Keywords

agricultural risk management, revenue insurance pricing, Copula, early indica rice

Abstract

A nonparametric kernel density distribution function was constructed based on the yield and price of early indica rice in Hunan Province from 1949 to 2019 in this paper. On this basis, Copula nonparametric method is employed to determine the most effective joint distribution function of price and unit yield through root mean square error (RMSE), and Monte Carlo simulation method is adopted to calculate the pure premium rate of revenue insurance. Results show more revenue insurance and lower pure premium rate compared with the current rice yield insurance. The inclusion of revenue insurance into financial subsidies is proposed accordingly to accelerate the pace of expansion.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Jianlin Peng
AU  - Xuerong Xu
PY  - 2020
DA  - 2020/11/13
TI  - Copula-Based Rate Determination of Crop Revenue Insurance
BT  - Proceedings of the 2020 International Conference on Management, Economy and Law (ICMEL 2020)
PB  - Atlantis Press
SP  - 37
EP  - 42
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201111.007
DO  - 10.2991/aebmr.k.201111.007
ID  - Peng2020
ER  -