Agriculture is a core industry segment both in terms of GDP contribution and employment, particularly in low- and middle-income countries. However, growing crops, raising livestock, farming fish and cultivating timber is a risky business with high exposure to natural disasters and epidemic diseases that lead to catastrophic losses at regional and international scale. Agricultural Risk Transfer provides a wide range of solutions for producers, agribusinesses and governments to proactively transfer risk of agricultural production assets to the (re)insurance industry and to capital markets. Today, risk transfer solutions exist in over 100 countries and the agriculture insurance sector alone has grown to US$30 billion while being promoted as an important climate change adaptation measure to increase resilience to production shocks.

Risk transfer is a crucial element of disaster risk finance and an important instrument for the sustainable rural development and financial inclusion. This book summarises all key concepts of it and comes right in time as the implementation of more agricultural (re)insurance and capital market risk transfer solution is needed more than ever in the wake of the increasing adverse impact of climate change.
— Thomas Kessler, Principal Finance Specialist (Disaster Insurance), Asia Development Bank (Philippines)

With the global population expected to reach 9.1 billion by 2050, soaring demand for more protein-based foods and potentially more frequent adverse weather conditions from climate change, producing sufficient resources is one of the key challenges of the agricultural sector. Risk transfer solutions play a critical role in securing higher production through the provision of safety nets against production shocks. Underwriting, pricing and transferring agricultural risks is complex and requires a solid understanding of the production system, exposure, perils and the most suitable products, which vastly differ among developed and developing markets.

Through its holistic approach and case studies, Agricultural Risk Transfer forms the ideal basis for regulators and government agencies to approach and integrate agricultural risk transfer into national risk management frameworks.
— Wang Qi, Director, Agriculture Division, Property & Casualty Department, China Banking and Insurance Regulatory Commission (China)

Agricultural Risk Transfer is the first comprehensive volume covering all aspects of agricultural (re)insurance, from fundamentals to specific products that are essential to understand and develop new (re)insurance and capital market solutions for crop, livestock, aquaculture and forest assets. Written by a well-known agricultural expert, it includes extensive industry case studies that illustrate the key concepts used in both, developed and developing agricultural markets.

A very large portion of people living in extreme poverty have their livelihoods tied to some form of farming and 93% of those living in extreme poverty are in countries that are politically fragile and/or environmentally vulnerable and ill-equipped to help their people when there is a natural disaster. Making matters worse, 94% of the economic losses from natural disasters over 1990-2016 in low- and middle-income countries were uninsured. This ‘protection gap’ is particularly acute for agricultural insurance. This book provides a comprehensive and thoughtful analysis for the challenges in risk transfer for agriculture and promises to contribute to efforts in closing the protection gap. The chapter on data is outstanding and very useful as we also identified data as a major constraint in providing risk transfer in low- and middle-income countries.
— Prof Jerry Skees, Founder, Chief Strategy Officer and Director, Global Parametrics (USA)

Through Agricultural Risk Transfer, (re)insurance underwriters, actuaries, modellers, risk managers and assessors, government officials, bank and fund managers, agribusiness executives and students in agricultural economics and development will gain a deep understanding of methodologies to structure and transfer agricultural risks. This book closes the knowledge gap between developed and developing agricultural markets, insurers and reinsurers and capital markets as well as between the industry and academia.

Many colleagues and friends from the industry and academia have helped in reviewing the book’s chapters and case studies, while all remaining errors are my sole responsibility. I would appreciate if readers could report errors or inconsistencies through roman.hohl@agriculturalrisktransfer.com.

Agricultural Risk Transfer is available from different providers including Wiley (publisher), Amazon, Wheelers Books and Waterstones.