The Impact of Extreme Weather Events on Agricultural Insurance in Europe
In Europe, climate change has a big impact on agriculture, due to an increase in the frequency and severity of extreme weather events. Many and prolonged droughts, heatwaves, floods, and hailstorms cause major economic losses that affect crop quality and generate instability in supply chains. In thi...
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| Format: | Article |
| Language: | English |
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MDPI AG
2025-05-01
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| Series: | Agriculture |
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| Online Access: | https://www.mdpi.com/2077-0472/15/9/995 |
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| author | Alina Claudia Manescu Flavia Mirela Barna Horatiu Dan Regep Camelia Maria Manescu Cristina Cerba |
| author_facet | Alina Claudia Manescu Flavia Mirela Barna Horatiu Dan Regep Camelia Maria Manescu Cristina Cerba |
| author_sort | Alina Claudia Manescu |
| collection | DOAJ |
| description | In Europe, climate change has a big impact on agriculture, due to an increase in the frequency and severity of extreme weather events. Many and prolonged droughts, heatwaves, floods, and hailstorms cause major economic losses that affect crop quality and generate instability in supply chains. In this study, we analyse the evolution of extreme weather events across Europe starting from the 1980s. The economic losses caused by extreme events were divided into three categories: heatwaves, frost, and fires; floods; and storms. In order to identify the trend and any shifts of the trend of the extreme weather events, we calculated moving averages over different periods: 5, 10, 20, and 30 years. The moving average analysis shows how climate change has altered from causing isolated and temporary economic losses to generate a consistent upward trend in losses, with an increasingly significant impact in the short, medium, and long term. In the second part of this study, we conducted a correlation analysis between the economic losses caused by extreme weather events and variations in property insurance premiums (fire and other property damage—which includes crop insurance premiums) and we calculated correlation coefficients directly, with a one-year lag, and with a two-year lag. Thus, we analysed whether insurance markets respond immediately to incurred losses or whether, depending on climate trends, there are delays in premium adjustments. |
| format | Article |
| id | doaj-art-61d218e0804e4f998ea6f85c2ff7aad7 |
| institution | OA Journals |
| issn | 2077-0472 |
| language | English |
| publishDate | 2025-05-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Agriculture |
| spelling | doaj-art-61d218e0804e4f998ea6f85c2ff7aad72025-08-20T02:24:43ZengMDPI AGAgriculture2077-04722025-05-0115999510.3390/agriculture15090995The Impact of Extreme Weather Events on Agricultural Insurance in EuropeAlina Claudia Manescu0Flavia Mirela Barna1Horatiu Dan Regep2Camelia Maria Manescu3Cristina Cerba4Faculty of Economics and Business Administration, West university of Timisoara, 300223 Timisoara, RomaniaFaculty of Economics and Business Administration, West university of Timisoara, 300223 Timisoara, RomaniaFaculty of Economics and Business Administration, West university of Timisoara, 300223 Timisoara, RomaniaFaculty of Management and Rural Tourism, University of Life Sciences ”King Mihai I”, 300645 Timisoara, RomaniaFaculty of Economics and Business Administration, West university of Timisoara, 300223 Timisoara, RomaniaIn Europe, climate change has a big impact on agriculture, due to an increase in the frequency and severity of extreme weather events. Many and prolonged droughts, heatwaves, floods, and hailstorms cause major economic losses that affect crop quality and generate instability in supply chains. In this study, we analyse the evolution of extreme weather events across Europe starting from the 1980s. The economic losses caused by extreme events were divided into three categories: heatwaves, frost, and fires; floods; and storms. In order to identify the trend and any shifts of the trend of the extreme weather events, we calculated moving averages over different periods: 5, 10, 20, and 30 years. The moving average analysis shows how climate change has altered from causing isolated and temporary economic losses to generate a consistent upward trend in losses, with an increasingly significant impact in the short, medium, and long term. In the second part of this study, we conducted a correlation analysis between the economic losses caused by extreme weather events and variations in property insurance premiums (fire and other property damage—which includes crop insurance premiums) and we calculated correlation coefficients directly, with a one-year lag, and with a two-year lag. Thus, we analysed whether insurance markets respond immediately to incurred losses or whether, depending on climate trends, there are delays in premium adjustments.https://www.mdpi.com/2077-0472/15/9/995extreme weather eventsclimate changeagricultureinsurance premium |
| spellingShingle | Alina Claudia Manescu Flavia Mirela Barna Horatiu Dan Regep Camelia Maria Manescu Cristina Cerba The Impact of Extreme Weather Events on Agricultural Insurance in Europe Agriculture extreme weather events climate change agriculture insurance premium |
| title | The Impact of Extreme Weather Events on Agricultural Insurance in Europe |
| title_full | The Impact of Extreme Weather Events on Agricultural Insurance in Europe |
| title_fullStr | The Impact of Extreme Weather Events on Agricultural Insurance in Europe |
| title_full_unstemmed | The Impact of Extreme Weather Events on Agricultural Insurance in Europe |
| title_short | The Impact of Extreme Weather Events on Agricultural Insurance in Europe |
| title_sort | impact of extreme weather events on agricultural insurance in europe |
| topic | extreme weather events climate change agriculture insurance premium |
| url | https://www.mdpi.com/2077-0472/15/9/995 |
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