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Stochastic Simulation of Catastrophic Hail and Windstorm Indemnities in the Dutch Greenhouse Sector

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A risk analysis was performed to examine the effect of changes in the Dutch greenhouse sector on the probability of occurrence and magnitude of indemnities induced by catastrophic natural hazards. Analyzed historical indemnities, which included direct and consequential losses resulting from severe hail and windstorms, were used as input in a stochastic simulation model. Applications of the stochastic simulation model were illustrated under alternative risk conditions. A comparison was made between the current structure of greenhouse production and the expected structure in the next decade that differs with respect to the spatial distribution and average size.

Keywords: Stochastic simulation; adverse weather conditions; agriculture; insurance

Document Type: Original Article


Affiliations: Department of Social Sciences, Wageningen University, Wageningen, The Netherlands.

Publication date: August 1, 2001


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