Agriculture risk

Amid increasingly frequent and severe weather events and natural disasters — including droughts, floods, and pest infestations, alongside market-related risks and price volatility — the need for comprehensive and dependable agricultural risk assessments has never been more critical. Such assessments are essential to minimize potential losses, as well as effectively bridge the insurance coverage gap so farmers and agricultural businesses can remain resilient through unpredictable challenges.

At Moody's, we recognize agricultural risk’s particular complexities. Our agricultural models are specifically designed to help insurers and reinsurers measure and analyze a wide range of risk types across different countries, employing sophisticated modeling techniques and leveraging advanced data analytics. By doing so, we can help you develop robust risk management strategies that foster greater resilience and sustainability in the agricultural sector.

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What we do

Moody’s RMS India, China, and Brazil agricultural risk can help you manage the risk from growing and evolving agricultural markets across all key coverages and schemes.

Grow and diversify

Target the most profitable areas of growth with a breakdown of results by region and crop type.

Enhance risk pricing

Extend the view of risk beyond historical data with our models to overcome the challenge of agriculture’s actuarial risk pricing.

Close the insurance gap

Keep up with continually evolving markets to help close the insurance coverage gap.

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Interested in learning more about our offerings? Our solutions specialists are ready to help.

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Our agriculture risks

01 China agricultural risk
02 India agriculture risk
03 Brazil agricultural risk

01 China agricultural risk

China agricultural risk

China’s mainland has the largest livestock and forestry insurance portfolio in the world and boasts the second-largest market for agriculture insurance after the US. As the market continues to evolve, deeper understanding has never been more important. The Moody’s RMS™ Model for China Agricultural risk can help close the insurance coverage gap and accurately measure crop, livestock, and forestry risks at a country level consistent with the insurance coverage in China’s mainland.

02 India agriculture risk

India agriculture risk

India is the largest market for weather and yield index-based agriculture insurance schemes. The agricultural land in India relies on rainfall for irrigation; being rain-fed, the area is also at increased likelihood of monsoon rainfalls. If not measured accurately, this poses a huge challenge for insurers and reinsurers. The Moody’s RMS Model for India agriculture risk covers weather and yield index-based insurance contracts at the district level.

03 Brazil agricultural risk

Brazil agricultural risk

Brazil is the fourth-largest agricultural-producing country in the world whose agricultural insurance premiums have rapidly grown to over $1 billion since the introduction of the rural insurance premium subsidy program in 2006. The Moody’s RMS Model for Brazil Agricultural risk supports the modeling of both multi-peril crop insurance and revenue insurance for the eight top premium crops in the country to assist (re)insurers in effectively underwriting and managing this risk.

Where we help

Regional and country agricultural risks models

News and views

blog

Nov 21, 2022

Persistent La Niña conditions aggravate drought-associated crop losses in southern Brazil in 2021–22

Southern Brazil was impacted by drought conditions during the 2021–22 growing season, resulting in harvest failures for major cash crops such as soybeans, first-season corn, and wheat. What were the main factors driving these losses, how often can we expect such conditions, and what might we expect in forthcoming years?

blog

Feb 21, 2019

Moody's

Addressing the challenges in assessing livestock insurance risks

Livestock insurance represents a significant portion of global agriculture premiums. A complete probabilistic solution can significantly extend the view of tail risk for reinsurance purchase as well as in terms of loss cost estimation for primary insurance underwriting.

blog

Oct 04, 2018

Moody's

Coming together to build a resilient India agriculture insurance sector

To reach its target of covering 50% of cropped area within the next few years, the Indian government is committed to transfer and spread risk, including agricultural risk, both nationally and internationally through insurance mechanisms.

Catastrophe modeling

As natural catastrophes continue to increase in intensity and frequency, the ability to understand and quantify the potential impact of events, including their tail risks and influence on earnings, is now more important than ever. Learn about the depth and breadth of Moody’s modeling portfolio, including 400 peril models in nearly 100 countries.