A new vision for agriculture
momagri, movement for a world agricultural organization, is a think tank chaired by Christian Pèes.
It brings together, managers from the agricultural world and important people from external perspectives,
such as health, development, strategy and defense. Its objective is to promote regulation
of agricultural markets by creating new evaluation tools, such as economic models and indicators,
and by drawing up proposals for an agricultural and international food policy.
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  Editorial  
 

Crop insurance in the United States:
Big data revolutionizes risk coverage



Frédéric Hénin, Editor-in-Chief, Terre-net


Article published in Terre-net Média



Thanks to Big data, insurance companies are now capable to measure, for each plot of land, crop insurance premiums based on the risk presented by each crop produced.

The insurance industry is on the threshold of a major upheaval. “Big data is going to trigger the industry’s outburst,” indicated Eric Schmidt, President of Google, in the November 6 issue of the French daily Le Monde. Thanks to the spectacular capacities of stocking data provided by Big data, insurers will shift from an insurance model centered on fixed bases, to a predictive and individualized model with, as first consequence, the reconsideration of risk pooling on which is based the insurance principle. Driving and health: no human activity will escape this change.

Agriculture is already engaged on the road to predictive insurance. According to Didier Géneau, a reporter at the evening daily, the start-up Climate Corporation “already has predictive models capable of providing an insurance estimate in 100 milliseconds.” The weather data gathered on 2.5 million collection points is used to assess the risks incurred by farmers, according to the crop growing in each of their plots. In the end, this is to calculate the amount of the premium to be paid.

The higher the risk taken to grow a crop, the higher will be the amount of the insurance premium.

In other words, insurance companies will be able to assist farmers in decision-making. They will no longer be there “to sign a check in case of a setback” said Véronique Weill, Director of Operations at the Axa Group, when she was interviewed by Le Monde.


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Paris, 11 December 2018