Earthquake Risk Transfer for Food and Agriculture Industry
Food and Agriculture Industry Earthquake Risks Overview
The Food and Agriculture Sector is composed of complex production, processing, and delivery systems and has the capacity to feed people and animals both within and beyond the boundaries of the United States. These food and agriculture systems are almost entirely under private ownership, operate in highly competitive global markets, strive to operate in harmony with the environment, and provide economic opportunities and an improved quality of life for citizens.
Under Risks Sectors including: Food production; and distribution.
Earthquake Risks in the Food and Agriculture Industry
Alongside drought with $29 billion and floods with $19 billion losses, earthquakes with $10.5 billion loss, are one of the top three hazards that impacted the Food and Agriculture sector between 2009 and 2015.
The Geography of Disaster
In Asia — the world region where agriculture was most affected by disasters — floods and storms had the largest impacts, but Asian agricultural systems are also heavily affected by earthquakes, tsunamis and extreme temperatures.
For both Africa as well as for Latin America and the Caribbean, drought is the costliest type of disaster — causing crop and livestock losses of $10.7 and $13 billion in those regions, respectively, between 2005 and 2015.
Crop pests and animal diseases were also among the most expense-inducing disasters for African farmers, notching up $6+ billion in losses in that same period.
And across the globe, Small Island Developing States (SIDS) are particularly vulnerable to natural disasters, in particular tsunamis, earthquakes, storms and floods. Economic losses in SIDS stemming from disasters jumped from $8.8 billion for the period 2000-2007 to over $14 billion between 2008-2015.
Affordable Risk Transfer
Once a loss occurs, it is too late to revise an insurance policy. Consequently, the policyholder must be extremely diligent during policy purchase and renewal. Understanding specific insurance requirements, carefully calculating the property and business interruption values, outlining contingency plans, and anticipating the potential losses at each location are all key steps in maximizing future insurance recoveries. In sum, paying close attention to the potential impact of a loss at the insurance procurement stage will help to minimize issues and maximize recovery when a loss does occur.
Now that revising insurance policies once a loss occurs is too late, Earling helps to know the best time to transfer risk through new policies or extending the current coverage for a limited period of time for example only for 10 days and not for 365 days of year.
Maximizing insurance coverage after a catastrophic loss is difficult for any company but Earling Earthquake Preparedness Alerts assists to do it before a catastrophe occur.
Well Known Risk Takers
Tackle your risks with our solutions to the big players. We propose enterprise companies as well as SMEs and individualizes the best time to purchase a new earthquake policy or extending the current coverage to make it inexpensive.
Currently, Japan, New Zealand, Greece, Turkey, Caribbean, Chile, Ecuador, Taiwan, Romania, Indonesia, California are the regions, which Munich Re accepts their risks. In addition, South Africa, Oklahoma and Utah are subject to further work. Also, between the regions that Earling issues Earthquake Preparedness Alerts, Japan, New Zealand, Caribbean, Chile, Ecuador, Taiwan, Indonesia and US (California, Utah) are undercover by Swiss Re to take the risks.
How we can help?
In general, Earling has a global seismic monitoring network and specialists that are subject matter experts. Regarding the challenges mentioned above, Earling is been able to deliver support.
- In the pressure on profitability, performance management and key performance indicator settings.
- In the entrance of parametric insurance markets and issuing alternative products, Earling can deliver independent advice by our global resources.
- To keep control on the impact of catastrophic events, Earling can assist in optimizing, validating on Cat and reinsurance programs modelling.