Open AccessCoffee export insurance premium estimates from Sumatera Utara Province in international market
Author(s) -
Rainal Sunny,
Sri Fajar Ayu,
. Rahmanta
Publication year - 2020
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.179
H-Index - 26
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/454/1/012014
Subject(s) - insurance premium , volatility (finance) , indonesian , business , index (typography) , agricultural economics , agricultural science , actuarial science , economics , finance , environmental science , linguistics , philosophy , world wide web , computer science
Calculation of insurance premiums can be analysed based on a area’s yield index, weather and price volatility. This study reviewed based on the movement of Sumatera Utara coffee export prices. The purpose is to calculate and review the premium insurance for Sumatera Utara coffee exports in the international market. The research location was determined purposively with snowball sampling technique. The research data consisted of primary data which was collected by questionnaire and secondary data from Association of Indonesian Coffee Exporters Regional of Sumatera Utara and province’s statistical data. The coverage amount 32,458,011.5 IDR, it is obtained from calculation of costs incurred by exporters. The Black-Scholes method is used to determine the value of coffee export insurance premiums based on the export prices. The analysis shows that the higher trigger also increases the insurance premium, because the higher risk, so the higher premium.