Methods and systems for assessing moral hazard and adverse selection in agricultural insurance

A system, comprising:

• a memory storing instructions;
• one or more communication interfaces;
• and
• one or more hardware processors coupled to the memory via the one or more communication interfaces, wherein the one or more hardware processors are configured by the instructions to:
• acquire in real time, a plurality of data pertaining to an agricultural unit, wherein the plurality of acquired data includes (i) remotely sensed data using one or more aerial vehicles (ii) ground data, and (iii) information associated with predefined recommended agricultural practices of an agricultural insurance;
• compute, a moral hazard score based on one or more variables derived from the acquired data, wherein the one or more variables include an adoption index, a crop health index and a weather index;
• dynamically determine, a moral hazard level of one or more persons insured with the agricultural insurance based on the moral hazard score, wherein the moral hazard level indicates a correlation between one or more parameters derived from the acquired data and classified as low, moderate, and high based on the correlation;
• and
• identify existence of an adverse selection for the one or more persons insured with the agricultural insurance based on the dynamically determined moral hazard level and one or more data parameters associated with the remotely sensed data acquired using the one or more aerial vehicles.

One or more non-transitory computer readable mediums comprising one or more instructions which when executed by one or more hardware processors cause:

• acquiring in real time, via one or more processors, a plurality of data pertaining to an agricultural unit, wherein the plurality of acquired data includes (i) remotely sensed data using one or more aerial vehicles (ii) ground data, and (iii) information associated with predefined recommended agricultural practices of an agricultural insurance;
• computing, via the one or more processors, a moral hazard score based on one or more variables derived from the acquired data, wherein the one or more variables include an adoption index, a crop health index and a weather index;
• dynamically determining, via the one or more processors, a moral hazard level of one or more persons insured with the agricultural insurance based on the moral hazard score, wherein the moral hazard level indicates a correlation between one or more parameters derived from the acquired data and classified as low, moderate, and high based on the correlation;
• and
• identifying, via the one or more processors, existence of an adverse selection for the one or more persons insured with the agricultural insurance based on the dynamically determined moral hazard level and one or data more parameters associated with the remotely sensed data acquired using the one or more aerial vehicles.