Actuarial models for the agricultural insurance: systematic review

Abstract

This study gathers the most used methodologies in research on the modeling of variables for the estimation of the pricing of Brazilian agricultural insurance, to analyze the advantages and disadvantages of using these models. The research is a systematic literature review on the subject. It was observed that most of the works made use of parametric models, which is attributed to the fact that they are well defined mathematically and computationally. For the productivity and price variables, the use of the normal distribution is outstanding. In turn, the joint distribution is for the most part modeled by the copula theory.