Climate Insurance for Agriculture in Europe: On the Merits of Smart Contracts and Distributed Ledger Technologies

Schwarze, Reimund; Sushchenko, Oleksandr

doi:10.3390/jrfm15050211

Cited by 4 publications

(4 citation statements)

References 23 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…They have to bear losses due to restrictions enforced by the government to prevent the spread of COVID-19. Before the outbreak of COVID-19, most agricultural insurance programs served as protection against losses caused by extreme weather (Schwarze and Sushchenko 2022). However, there is no agricultural insurance that protects from pandemics.…”

Section: Methodsmentioning

confidence: 99%

The economic well-being of smallholders and challenges during COVID-19 pandemic: A review

Suib¹,

Salleh²,

Ahmad³

2023

AGR ECON-CZECH

View full text Add to dashboard Cite

The challenges smallholders face in agricultural management between developed and developing countries differ and can also impact the smallholder's well-being. The purpose of this study is to identify factors that affect the well-being of smallholders. We conducted a systematic literature by applying the Preferred Reported Item for Systematic Review and Meta-Analysis (PRISMA) and extracted 30 articles from Scopus and Web of Science. These articles show three main factors that drive well-being: technology, optimal resource, and insurance, and two additional factors: market pricing and tax policy. Findings show that all the above factors will first impact economic well-being and, subsequently, social well-being. When COVID-19 struck, the smallholder's well-being was also affected in addition to the destabilised food chain. Travel restrictions have led to a labour shortage. The smallholders had to turn to e-commerce to sell their products. They also incurred losses and experienced difficulties in procuring agricultural intermediate inputs. The absence of agricultural insurance worsened the impact on the well-being of the smallholders. To safeguard the well-being of these smallholders, the study suggests that stakeholders should encourage local labour participation, increase investment in human capital, adopt e-commerce in marketing, offer agricultural insurance schemes against various disasters and continuously provide or increase subsidies to smallholders.

show abstract

Section: Methodsmentioning

confidence: 99%

The economic well-being of smallholders and challenges during COVID-19 pandemic: A review

Suib¹,

Salleh²,

Ahmad³

2023

AGR ECON-CZECH

View full text Add to dashboard Cite

show abstract

“…This concept [22][23][24][25] could be applied to provide automatic insurance policies due to, for example, adverse weather patterns. A similar system, in which a farmer enters into a smart contract with an insurance provider, exists; the system will lookup current weather data such as rainfall, and depending on whether a threshold is exceeded, the farmer may receive compensation to cover their losses [26,27]. Agriculture insurance has developed across economies in South East Asia.…”

Section: Literature Reviewmentioning

confidence: 99%

Strata Fee Management in Condominiums via Smart Contracts

Scholte,

Wang,

Chung

et al. 2023

JTAER

View full text Add to dashboard Cite

Condominiums and similar properties use a stratum to manage daily operations, and owners fund it through strata fees. While existing strata fee management systems may be able to handle such funds, such systems could be more inherently transparent. It is possible to leverage the digital ledger from blockchain networks and smart contracts to build a fully transparent strata fee management system. This paper proposes designing a strata fee management system based on a smart contract in the Ethereum network. Both strata corporations and homeowners can interact with the smart contract to execute common procedures such as paying strata fees and handling expenses. Using smart contracts for strata fee management, it is believed that the chance of fraud by strata corporations is lowered compared to other systems.

show abstract

“…During the period 1980-2019, extreme natural and climatic events caused more than 80% of total economic losses in the countries of the European Economic Area totalling EUR 446 billion. Cumulative losses amounted to almost 3% of the GDP of these countries (Schwarze & Sushchenko, 2022).…”

Section: Literature Reviewmentioning

confidence: 99%

“…According to the decision of the European Commission, the amount of state support is limited to 70% of premiums or annual payments to mutual funds (European Commission, 2017). Three-quarters of EU countries allocate subsidies from 45% to 65% for agricultural risk insurance (Schwarze & Sushchenko, 2022).…”

Section: Introductionmentioning

confidence: 99%

Mission of International Agribusiness Insurance: Modern Challenges and Opportunities for Ukraine

Віленчук¹,

NEDILSKA²,

Kurovska³

et al. 2022

Scientific Horizons

View full text Add to dashboard Cite

An urgent problem today is the reproduction of a sustainable ability to meet the demand for food products in different countries of the world. The solution to this global problem lies in the search for optimal financial and economic tools for timely counteraction to agricultural risks. Many years of international experience prove that such a tool is insurance. The purpose of the study is to conceptualise the mission of international agribusiness insurance, specify modern challenges, and identify opportunities for Ukraine. The methodology of this study was based on the use of various methods, in particular: abstract and logical, epistemological, comparative, structural and functional, modelling, formalisation, induction and deduction, regression and system analysis. The uniqueness of insurance lies in its ability to accumulate the necessary financial resources and distribute them to the needs of compensation for losses in the case of insurance events distributed in space and time. Consequently, the conducted research is aimed at substantiating the mission of international agribusiness insurance, identifying current challenges and existing opportunities in Ukraine. The main advantages and disadvantages of various models of interaction of stakeholders in the international agricultural insurance market are established. The paper highlights the world experience in positioning classic and index insurance products on the market. It was found out that the current level of agribusiness insurance in Ukraine does not correspond to its potential opportunities. Based on the parameters of the constructed regression model, it is established that the basis for further expansion of insurance coverage of agricultural risks is an increase in the number of concluded and renegotiated agricultural insurance contracts, an increase in the liability limit (insurance amounts) of companies, ensuring actuarial balance, and an increase in the amount of state subsidies. The practical implementation of these measures should be considered in the context of food security at the regional, national, and global levels

show abstract

Climate Insurance for Agriculture in Europe: On the Merits of Smart Contracts and Distributed Ledger Technologies

Cited by 4 publications

References 23 publications

The economic well-being of smallholders and challenges during COVID-19 pandemic: A review

The economic well-being of smallholders and challenges during COVID-19 pandemic: A review

Strata Fee Management in Condominiums via Smart Contracts

Mission of International Agribusiness Insurance: Modern Challenges and Opportunities for Ukraine

Contact Info

Product

Resources

About