The agricultural industry is faced with a plethora of risks, and some of its major loss drivers are weather-driven natural catastrophes. In contrast to many other industries, for agri- culture it’s not just the occurrence of a certain type of event that is important, but also its timing. Even a very intense typhoon cannot cause losses if there are no crops in the field, and reduced rainfall in a two-week period coinciding with critical stages of plant development may cause far more damage than a one-month dry period close to harvest.
Different parts of the world face different weather-driven perils, and one way to classify them is by their geographic extent. Localised events, such as hail, vary in frequency and severity from year to year, but a single event affects only a restricted area. Perils which affect very large geographic regions simultaneously are what we call “systemic risks” or “cat events” and can cause large losses, sometimes even spanning multiple countries. Here we examine one such catastrophic peril: winterkill.
Source – www.scor.com