Understanding farmers’ valuation of agricultural insurance
Evidence from Vietnam
Bibliographic Data
| ID | 11930780 |
|---|---|
| Authors | Michael King (0000-0003-4715-7171, Trinity College Dublin, corresponding author), Anuj Pratap Singh (0000-0003-1186-2063, Trinity College Dublin) |
| Year | 2020 |
| Volume | 94 |
| Pages | 101861-101861 |
| Publication date | 2020-04-08 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Food Policy (JOURNAL) |
| Journal identifiers | ISSN: 0306-9192 • E-ISSN: 1873-5657 |
| Publisher | Elsevier BV (PUBLISHER) |
| DOI | 10.1016/j.foodpol.2020.101861 |
| OpenAlex | W2972904637 |
| Language | EN |
| Citations received | 8 |
| References cited | 43 |
Agricultural index insurance offers smallholder farmers the potential to manage pervasive weather and environmental risks, and smooth income over time. Yet despite the potential benefits, take-up of index insurance has been largely disappointing. We employ a novel approach to investigate the reasons for low demand and we confirm that farmers systematically undervalue agricultural index insurance. We find that access to private transfers acts as a substitute for insurance demand, while membership of a farmer’s union helps explain why farmers value index insurance. Finally, we find that individual riskiness is positively related to willingness to pay for agricultural index insurance and interpret this as further evidence that, within the context of basis risk and lack of trust in insurers, farmers valuation of agricultural index insurance can be better understood through behavioural theories such as ambiguity aversion or prospect theory
Actuarial science · Agricultural economics · Agriculture · Ambiguity · Basis risk · Business · Context (archaeology · Crop insurance · Economics · Index (typography · Insurance policy · Key person insurance · Microeconomics · Public economics · Valuation (finance · Willingness to pay · Agricultural risk and resilience · Microfinance and Financial Inclusion · Poverty, Education, and Child Welfare · Finance
Drought-index insurance, advisory services and farm productivity in Ghana
Are Vietnamese coffee farmers willing to pay for weather index insurance
Insights on household’s resilience to shocks and poverty
Ambiguity and technology adoption under index insurance
Agricultural Insurance and Agricultural Economic Growth
Revisiting preferences for agricultural insurance policies
Price, information and product quality
Can land fragmentation mitigate the impact of weather shocks? Evidence from rural Vietnam
Uncertainty and the Welfare Economics of Medical Care
Social capital, political connections, and household enterprises
Agricultural Decisions after Relaxing Credit and Risk Constraints
Mitigating disaster losses through insurance
Informal Risk Sharing, Index Insurance, and Risk Taking in Developing Countries
Barriers to Household Risk Management
Patterns of Rainfall Insurance Participation in Rural India
Linking Measured Risk Aversion to Individual Characteristics
Risk Aversion, Wealth, and Background Risk
Advances in prospect theory
Human Values and the Market
Remittances, Banking Status and the Usage of Insurance Schemes
Individual Risk Attitudes
The Demand for Microinsurance
Offering rainfall insurance to informal insurance groups
Insurance, credit, and technology adoption
The S-Shaped Utility Function
Market Insurance, Self-Insurance, and Self-Protection
Utility, Risk and Demand for Incomplete Insurance
Wealth, Weather Risk and the Composition and Profitability of Agricultural Investments
Human Values and the Market
| Citations per year | 2 |
|---|---|
| Citation span | 2022 - 2026 (5) |
| Highly cited | No |