Single-Risk Insurance: This type of insurance provides coverage against a single risk (peril).
Among agricultural insurance mechanisms, hail insurance is one of the most widely applied
single-risk insurances. The single risk insurance can also be supported by the private insurance
companies since the risk is not systematic. Usually, hail affects a limited area. Thus, the
accumulated loss from the realization of this risk is limited to that area. Farmer's cooperatives in
France and Germany offered crop-hail insurance as early as 1820.