Multivariate weighted premium principle for determining crop insurance premium

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

The objective of this paper is to calculate premium in crop insurance using MWPP (Multivariate Weighted Premium Principle). This premium principle integrate external risk factors to crop insurance premium such as economic risk and catastrophe risk. The external risk factors are different from internal factors which are the initial risks from the original crop premium. MWPP is the new crop premium that reweight historical loss data with external factors. Risk loading is calculated with transforming underlying risk by adding external factors. By choosing the right external factors, this premium principle has a relatively increasing risk loading.

Original languageEnglish
Title of host publicationProceedings of the 4th International Symposium on Current Progress in Mathematics and Sciences, ISCPMS 2018
EditorsTerry Mart, Djoko Triyono, Ivandini T. Anggraningrum
PublisherAmerican Institute of Physics Inc.
ISBN (Electronic)9780735419155
DOIs
Publication statusPublished - 4 Nov 2019
Event4th International Symposium on Current Progress in Mathematics and Sciences 2018, ISCPMS 2018 - Depok, Indonesia
Duration: 30 Oct 201831 Oct 2018

Publication series

NameAIP Conference Proceedings
Volume2168
ISSN (Print)0094-243X
ISSN (Electronic)1551-7616

Conference

Conference4th International Symposium on Current Progress in Mathematics and Sciences 2018, ISCPMS 2018
CountryIndonesia
CityDepok
Period30/10/1831/10/18

Keywords

  • climate change
  • crop insurance premium
  • external factors
  • MWPP
  • risk loading

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  • Cite this

    Adilla, Y., Mardiyati, S., & Sari, S. F. (2019). Multivariate weighted premium principle for determining crop insurance premium. In T. Mart, D. Triyono, & I. T. Anggraningrum (Eds.), Proceedings of the 4th International Symposium on Current Progress in Mathematics and Sciences, ISCPMS 2018 [020040] (AIP Conference Proceedings; Vol. 2168). American Institute of Physics Inc.. https://doi.org/10.1063/1.5132467