The impact of climatic change on livestock insurance

Abstract

The purpose of this study was to investigate the climatic change and its impact on livestock insurance. Livestock insurance is an ordinary insurance product. This product has developed very quickly. Thirty years ago, insurers covered only cattle, now they can cover a risk as delicate as aquaculture. The success of livestock insurance is due to importance given by breeders to risk management. Insurance constitutes the ultimate defense against livestock risk. Climate change is expected to exacerbate current pressure on the limited surface and groundwater resources. It is important to note the magnitude of changes in the spatial and temporal distribution of precipitation, soil moisture, and runoff, and the frequencies and magnitude -of droughts and floods is not currently predictable with confidence. Nevertheless, most of the adoptive measures available today to manage water resources would be valid for the future conditions in the event of climate change ( IPCC, 1990b)