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Agriculture Reinsurance

Supporting crop and livestock insurers against weather and yield volatility, including parametric structures.

Specialty

Agriculture is inherently catastrophe-exposed to weather. Stop-loss and parametric structures transfer systemic yield and weather risk efficiently.

Power Re approaches this line as a specialist: we assess each risk on its own merits, price it with actuarial rigor, and structure cover that genuinely fits the cedant’s exposure and objectives, never a one-size template.

Structures

How we structure it

The structures we most often deploy for this line, proportional and non-proportional, tailored to your book.

Stop-Loss

Caps the portfolio loss ratio in adverse years.

Parametric

Index-based triggers for rapid, objective payouts.

Quota Share

Proportional support for growing agri books.

Risk

Key risks & considerations

What we focus on when we underwrite this line.

Systemic weather, drought, flood, frost, hitting a whole region.
Basis risk in index products.
Yield and price volatility.

Our appetite

Crop and livestock books with credible yield and weather data or robust indices.

Technical note

Aggregate stop-loss caps the portfolio loss ratio; parametric structures give fast, objective payouts on index triggers.

Models

Actuarial modeling

The frequency and severity models we use to price this line, and the loss it aggregates to.

Frequency models

PoissonNegative binomial (clustering)

Severity models

Pareto / Generalized ParetoMixed / parametric (index)

Extreme-value tail (GPD)

$$\Pr(X>x)\approx \Big(1+\xi\,\tfrac{x-u}{\beta}\Big)^{-1/\xi}$$

Above a high threshold u, the tail follows a Generalized Pareto Distribution; systemic accumulation is modeled with clustering and, for agriculture, parametric indices.

Severity models

Severity model	Typical use
Lognormal	Body of the loss distribution, attritional claims
Gamma	Moderate, positively skewed claims
Pareto	Large claims and heavy tails
Generalized Pareto (EVT)	Extreme tail above a high threshold

Discipline

Our underwriting approach

The discipline is the same across every line we write.

Risk selection

We assess each risk on its merits and let marginal business go, growth by quality, not volume.

Pricing discipline

Experience and exposure rating, credibility-weighted, load the price for volatility and cost of capital.

Accumulation control

Clear limits manage concentration by event, geography and cedant across the portfolio.

Claims partnership

Fast, fair and transparent claims handling, the moment our promise is tested.

Why Power Re

Why cede Agriculture Reinsurance to Power Re

✓
Specialist expertise
Deep technical knowledge of the line and of the Latin American market.
✓
Fast, clear decisions
A timely yes or no, with terms and capacity you can rely on.
✓
Financial strength
13× regulatory solvency coverage and a disciplined retrocession program.
✓
Long-term partnership
We co-design programs and stand with cedants through the cycle.

Let’s build resilient portfolios together

Partner with a reinsurer that combines technical discipline, financial strength and deep regional insight.

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