This chapter deals with (1) designing an epidemic livestock insurance in such a way that farmers get the right incentives to behave in the interest of the collective; (2) designing a risk-financing model that deals with the systematic character of the risk and that considers a diminishing financial role for governments over time; and (3) rating the insurance by means of expert information and Monte Carlo simulation modelling to address data problems. The chapter has a European perspective and estimated premium rates apply to foot and mouth disease and hog cholera in the Netherlands.
|Title of host publication||The economics of livestock disease insurance: concepts, issues and international case studies|
|Editors||S.R. Koontz, D.L. Hoag, D.D. Thilmany, D. Green, J.L. Grannis|
|Number of pages||15|
|Publication status||Published - 2005|