Extreme weather events have strong impacts on agriculture and crop insurance. In France, drought (2003, 2011, 2017, and 2018) and excess of water (2016) are considered the most significant events in terms of economic losses. The crop (re)insurance industry must estimate its financial exposure to climatic events in terms of the average annual losses and potential extreme damages. Therefore, the objective of this paper was to develop a model that links meteorological indices to crop yield losses with a specific focus on extreme climatic events. We designed a meteorological index (DOWKI: Drought and Overwhelmed Water Key Indicator) based on a water balance cumulative anomaly that can explain drought and excess of water at the department scale. We propose a crop damage model calibrated by combining historical yield records and the DOWKI values. To estimate the financial exposure of insured crops at a national level, stochastic simulations of the DOWKI were performed to produce one thousand years of yield losses. Our objective was to estimate the effect of climatic extremes affecting the global production. Simulated average annual losses and the possible maximum claim for three crops (soft winter wheat, winter barley, and sunflower) are presented in the results.
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