Determining the premium of paddy insurance using the extreme value theory method and the operational value at risk approach

Paddy farming is a source of livelihood for most rural communities in Indonesia. Indonesia as an agrarian country with a tropical climate, where the sun shines all the time and farmers can grow crops throughout the season. However, changes in air temperature, weather, and annual rainfall which sometimes change uncertainly cause changes in cropping patterns, which are caused by minimal water supplies in the dry season and flooding in the rainy...