The aim of this paper is to explore a new method for data analysis that could be used for insurance calculations. In many agricultural nations rainfall per year and per annual quarter are good indications of the productive capacity in farmland. Essentially, there is a curvilinear relationship between rain and crop yield. The goldilocks zone varies by region and product, however, every farmer and minister of agriculture fears drought and/or flood. A Copula Quantile Regression (CQR) approach provides a novel approach to estimate the dependence of a function of the yield with respect to climate factors. This is then combined with quantile regression for nonlinear optics. This approach utilizes “Big Data” modeling and analytics to draw upon the wealth of information contained in the RICA databases. This study assesses variables such as the share of land covered by a sprinkler system, altitude, fragmentation of land, production intensity, rain, and temperature. It was found that this method provides a simpler and more flexible approach to analyze complex ecological, geological, economic, and sociological factors that impact business and commerce through risk management, strategic planning, and insurance.
|Title of host publication
|Sustainable Development and Social Responsibility—Volume 1
|Subtitle of host publication
|Proceedings of the 2nd American University in the Emirates International Research Conference, AUEIRC'18 – Dubai, UAE 2018
|Miroslav Mateev, Jennifer Nightingale
|Number of pages
|Published - 13 Feb 2020
|2nd American University in the Emirates International Research Conference - Dubai, United Arab Emirates
Duration: 13 Nov 2018 → 13 Nov 2018
|Advances in Science, Technology and Innovation
|2nd American University in the Emirates International Research Conference
|United Arab Emirates
|13/11/18 → 13/11/18
Bibliographical noteFunding Information:
The passive preventive hedging tools (insurance) are the focus of this research. An insurance contract is a tool through which the company transfers its risk to third parties (insurance company). The company that underwrites an insurance contract effectively transfers to third parties (insurance company) the business risk or part of it, which in this case is represented exclusively by potential damage due to adverse weather or epizootics. At the same time, the insurance company is obliged, in respect of the insured, to compensate the company if an accident occurs according to the contract conditions. For the transfer of risk the agricultural company must bear a cost (insurance premium), for which it can receive partial financial support from the European Union or the State. The agricultural enterprise, which intends to sign an insurance contract, has two possibilities: adherence to a collective contract or the signing of an individual insurance contract.
© 2020, Springer Nature Switzerland AG.
- Climate factors
- Crop yield and risk insurance
- Risk management
- Strategic planning
ASJC Scopus subject areas
- Renewable Energy, Sustainability and the Environment
- Environmental Chemistry