THE COVID-19 PANDEMIC EFFECT ON THE DETERMINING CHILLI CROP AGRICULTURAL INSURANCE PREMIUM

Parametric insurance is a type of that contains an agreement related to triggering events between the insurer and insured determined at beginning contract. The provision applies if event occurs (insurance company) obliged pay sum money (compensation) insured. Insurance based on area yield parametric insurance. Ozaki formulated agricultural model yields in called method. loss this method probability for crop under density function curve when smaller than maximum guaranteed yield, but losses calculated only include due failure do not COVID-19 pandemic. Meanwhile, Susilowati Gunawan, their journals, explained production level products, especially chili crops, during pandemic, tended be stable with demand purchasing power people, which significantly decreased. significant decline sales made farmers experience huge losses. Considering pandemic impact, we were interested formulating yield-based models calculates risk. So, premiums rates obtained are more realistic can reduce risk farmers, private companies, government.