Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

Developing Experience-Based Premium Rate Discounts in Crop Insurance

Roderick M. Rejesus, Keith H. Coble, Thomas O. Knight and Yufei Jin
American Journal of Agricultural Economics
Vol. 88, No. 2 (May, 2006), pp. 409-419
Stable URL: http://www.jstor.org/stable/3697731
Page Count: 11
  • Download ($36.00)
  • Subscribe ($19.50)
  • Cite this Item
Developing Experience-Based Premium Rate Discounts in Crop Insurance
Preview not available

Abstract

This article addresses the feasibility of implementing an experience-based premium rate discount system in crop insurance. While adverse selection and moral hazard in crop insurance have been extensively studied in the past, discount systems or bonus-malus incentives have not, to our knowledge, been investigated. Our empirical analysis indicates that a crop insurance discount system could be implemented based on a measure of favorable past insurance experience. The estimated average discounts based on the rating methods developed in this study ranged from 5% to 9% (depending on the crop being considered).

Page Thumbnails

  • Thumbnail: Page 
[409]
    [409]
  • Thumbnail: Page 
410
    410
  • Thumbnail: Page 
411
    411
  • Thumbnail: Page 
412
    412
  • Thumbnail: Page 
413
    413
  • Thumbnail: Page 
414
    414
  • Thumbnail: Page 
415
    415
  • Thumbnail: Page 
416
    416
  • Thumbnail: Page 
417
    417
  • Thumbnail: Page 
418
    418
  • Thumbnail: Page 
419
    419