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Livestock mortality insurance: development and challenges

Milton Boyd (Department of Agribusiness and Agricultural Economics, Faculty of Agricultural and Food Sciences, University of Manitoba, Winnipeg, Canada and Warren Centre for Actuarial Studies and Research, Asper School of Business, University of Manitoba, Winnipeg, Canada)
Jeffrey Pai (Warren Centre for Actuarial Studies and Research, Asper School of Business, University of Manitoba, Winnipeg, Canada)
Lysa Porth (Department of Agribusiness and Agricultural Economics, Faculty of Agricultural and Food Sciences, University of Manitoba, Winnipeg, Canada and Department of Statistics and Actuarial Science, Faculty of Mathematics, University of Waterloo, Waterloo, Canada)

Agricultural Finance Review

ISSN: 0002-1466

Article publication date: 26 July 2013

727

Abstract

Purpose

The purpose of this research is examine the development of livestock mortality insurance, and associated challenges, in order to provide an improved understanding regarding the operation of livestock mortality insurance.

Design/methodology/approach

In a many countries, livestock mortality insurance has been either unavailable or underdeveloped. A descriptive analysis is provided regarding the background and development of livestock mortality insurance, along with an example.

Findings

Livestock mortality insurance is considerably more complex than crop insurance, and some of the complexities of livestock mortality insurance include multi‐stage production, consequential losses, occasional large event losses, animal health management, moral hazard, and adverse selection.

Originality/value

This study provides background and development information regarding livestock mortality insurance, and also highlights a number of important differences between livestock mortality insurance and crop insurance.

Keywords

Citation

Boyd, M., Pai, J. and Porth, L. (2013), "Livestock mortality insurance: development and challenges", Agricultural Finance Review, Vol. 73 No. 2, pp. 233-244. https://doi.org/10.1108/AFR-04-2013-0019

Publisher

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Emerald Group Publishing Limited

Copyright © 2013, Emerald Group Publishing Limited

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