Penentuan Nilai Premi Asuransi Pertanian Berbasis Indeks Suhu Permukaan Menggunakan Metode Burn Analysis

Abstract

Temperature is an important factor in the production of agricultural commodities. For this reason, goverments needs to protect farmers in order to continue their farming. Climate-based agricultural insurance is an alternative to climate-related risk management. Insurance premium is given when the temperature index lower than the pre determined trigger index. The purpose of this study is to determine the stages and assumptions in determining the value of agricultural insurance premiums based on surface temperature index on cocoa commodities using the method of burn analysis. The temperature index was determined using the burn analysis method with the temperature as the climate parameter. Trigger values ??are determined based on long run times. In this paper, the result is that when the temperature index lower than the determined trigger value, trigger payments as much as Rp.10.931.960,40 / Ha based on trigger index as many 26.145 ° C, so amount of premium payment equals Rp 215.776.

Risk Analysis and Calculation of Insurance Premiums on Coffee Export Activities in North Sumatera Province

“…This percentile calculation is obtained from the coffee export price index in 2018. The following is an illustration of the calculation of coffee export insurance premiums using the Black-Scholes method [1,2,5,10]: Table 6. The Advance Payment (A/P) transaction system is the transaction system most frequently used by respondents.…”

“…That is, the value of insurance premiums incurred by respondents to use insurance services is 7.82% of the total costs borne by respondents. So that, by only pay about 7.82% of the invoice, actually the exporter had guaranteed from the risk or zero risk [1] [5] [9] [10]. So, the insurance of coffee export is a good strategy to manage the risk for the exporter of coffee in North Sumatera.…”

“…So to fullfil the demand of coffee by importers, the alternative carried out by North Sumatera exporters is to increase the supply of coffee from outside the Province of North Sumatera, which has different tastes and qualities that can pose a risk in coffee export activities carried out by North Sumatera Province exporters. One of the exporters' risks is the risk of breaking promises on non-L/C transactions that has the potential to occur, because the guarantee of repayment is the trust between the exporter and importer, not physical [1]. Even so, insurance provides services for exporters using the L/C transaction system and non-L/C transactions Existing exporters at the Indonesian Coffee Exporters Association in North Sumatera the increasing level of coffee exports and imports will also face a great risk as well.…”

Determination of the Amount of Premium and Indemnity in Shallot Farming Insurance

“…One of the methods to calculate the amount of indemnity in index-based insurance is to use historical burn analysis (HBA) method. Anggraeni et al [6] calculated the premium of surface temperature index-based insurance in cacao commodities in Jembrana Regency, Bali using HBA method and Black-Scholes equation. Research on the use of HBA method had been previously conducted by Wati et al [7] on paddy commodities in Cirebon Regency, West Java using rainfall as the climate index.…”

Application of Historical Burn Analysis Method in Determining Agricultural Premium Based on Climate Index Using Black Scholes Method

“…Research on the climate index using the Historical Burn Analysis method has been carried out by Anggraeni et al (2018) who also used the Black-Scholes method to calculate the premium. The study took place in Bali's Jembrana Regency using data on average surface temperature and cocoa production.…”