The feasibility of insurance heavily depends on the behaviour of the insured. Certification can be a tool to facilitate risk classification and monitoring. This chapter aims to analyse the role of certification for insurance of risks in agriculture. We develop three cases: (1) liability insurance in the animal feed industry, (2) epidemic disease insurance for farmers, and (3) liability insurance in the horse business. Findings illustrate that certification schemes have potential to enhance feasibility of insurance schemes, among others as a tool to cope with adverse selection. It is recommended to further exploit opportunities of certification as part of insurance design to also address problems of moral hazard and systemic risk.
|Title of host publication||Certification – Trust, Accountability, Liability|
|Publication status||Published - 13 Mar 2019|
|Name||Studies in European Economic Law and Regulation|
Meuwissen, M. P. M. (2019). Can Certification Enhance the Feasibility of Insurance? In P. Rott (Ed.), Certification – Trust, Accountability, Liability (pp. 133-142). (Studies in European Economic Law and Regulation; Vol. 16). Springer. https://doi.org/10.1007/978-3-030-02499-4_6