ARC Risk Consulting Services

Besides developing the leading risk models in agriculture, we support our clients and partners in product development, advanced analytics (risk profiling) and capacity building.

Product Development

We use our weather and yield index pricing model Agro Risk Metrics (ARM) and the skills of our scientists to support the development of index insurance. We further complement our modelling skills with the ability to run crop forecast models to generate synthetic yields.

Our key value added includes:

 

  • Education on the functionalities of index insurance
  • Analytics to form a decision basis of the best suitable type of index depending on the crop type and location
  • Development of indices through advanced analytics to minimize basis risk
  • Support in developing original policy wordings
  • Pricing of indices, claims calculations and portfolio level modelling

Risk Profiling

We leverage the skills and experience of our scientists and risk transfer specialists to develop risk profiles in agriculture on which risk transfer products can be designed for insurance and capital market players.

When requested, we support insurers in calculating complex reinsurance structures and pricing.

We use our software development capabilities in developing specific frameworks to integrate crop modelling and forecasting technology.

Examples

ifc

Development of a weather index insurance program for cotton and corn farmers in Mozambique (Africa) with Guy Carpenter and the International Finance Corporation (IFC)

groupama

Development and pricing of weather and yield indices for Groupama-AVIC in China.

ccafs

Implementation of the CCAFS yield forecast tool kit for South Asia in collaboration with CIAT and CGAIR.

mia

Development of risk profiles and weather indices using remote sensing data and biomass estimations to determine yield for the Micro Insurance Academy in India.

Capacity Building

Based on our expertise and track record, we take an active part at agriculture risk management conferences and are part of expert committees in the field of agriculture risk modelling and management.

Examples

air

Chairing the 1st Asia Agriculture Insurance Conference organized by Asia Insurance Review.

imd

Development of new weather indices for India’s agriculture insurance (WBCIS) being part of the expert committee of the India Meteorological Department (IMD).

ec

Contribution on challenges in index insurance in emerging market for the EC Joint Research Centre and the International Research Institute for Climate and Society.