Demand for crop insurance in developing countries: New evidence from India
Determining farmers’ real demand for crop insurance is difficult, especially in developing countries, where there is a lack of formal financial sector integration and a high reliance on informal risk mitigation options. We provide some new estimates of farmers’ willingness‐to‐pay for insurance in th...
| Autores principales: | , , , |
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| Formato: | Journal Article |
| Lenguaje: | Inglés |
| Publicado: |
John Wiley & Sons
2021
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/142665 |
| _version_ | 1855536690664308736 |
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| author | Ghosh, Ranjan Kumar Gupta, Shweta Singh, Vartika Ward, Patrick S. |
| author_browse | Ghosh, Ranjan Kumar Gupta, Shweta Singh, Vartika Ward, Patrick S. |
| author_facet | Ghosh, Ranjan Kumar Gupta, Shweta Singh, Vartika Ward, Patrick S. |
| author_sort | Ghosh, Ranjan Kumar |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Determining farmers’ real demand for crop insurance is difficult, especially in developing countries, where there is a lack of formal financial sector integration and a high reliance on informal risk mitigation options. We provide some new estimates of farmers’ willingness‐to‐pay for insurance in the context of a large‐scale subsidised programme in India. We conducted a discrete choice experiment with agricultural households across four states in India, enabling us to estimate preferences for specific insurance attributes such as coverage period, method of loss assessment, timing of indemnity payments and the cost of insurance. Our results suggest that farmers do value crop insurance under certain conditions and some are willing to pay a premium for such coverage in excess of the subsidised rates they are currently required to pay under this programme. In particular, farmers value the assurances that they will receive timely payouts when they incur losses, and may not have a strong preference for the method with which losses are assessed. On the other hand, farmers are quite sensitive to coverage periods. Our baseline assessment shows that when optimised to farmer requirements, there can be a sizeable demand for crop insurance by developing country farmers. |
| format | Journal Article |
| id | CGSpace142665 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2021 |
| publishDateRange | 2021 |
| publishDateSort | 2021 |
| publisher | John Wiley & Sons |
| publisherStr | John Wiley & Sons |
| record_format | dspace |
| spelling | CGSpace1426652025-02-24T06:47:28Z Demand for crop insurance in developing countries: New evidence from India Ghosh, Ranjan Kumar Gupta, Shweta Singh, Vartika Ward, Patrick S. insurance risk management willingness to pay farmers agricultural risk management demand capacity development crop insurance developing countries Determining farmers’ real demand for crop insurance is difficult, especially in developing countries, where there is a lack of formal financial sector integration and a high reliance on informal risk mitigation options. We provide some new estimates of farmers’ willingness‐to‐pay for insurance in the context of a large‐scale subsidised programme in India. We conducted a discrete choice experiment with agricultural households across four states in India, enabling us to estimate preferences for specific insurance attributes such as coverage period, method of loss assessment, timing of indemnity payments and the cost of insurance. Our results suggest that farmers do value crop insurance under certain conditions and some are willing to pay a premium for such coverage in excess of the subsidised rates they are currently required to pay under this programme. In particular, farmers value the assurances that they will receive timely payouts when they incur losses, and may not have a strong preference for the method with which losses are assessed. On the other hand, farmers are quite sensitive to coverage periods. Our baseline assessment shows that when optimised to farmer requirements, there can be a sizeable demand for crop insurance by developing country farmers. 2021-02-01 2024-05-22T12:10:50Z 2024-05-22T12:10:50Z Journal Article https://hdl.handle.net/10568/142665 en https://hdl.handle.net/10568/145897 https://hdl.handle.net/10568/147493 https://hdl.handle.net/10568/147891 https://hdl.handle.net/10568/147890 Open Access John Wiley & Sons Ghosh, Ranjan Kumar; Gupta, Shweta; Singh, Vartika; and Ward, Patrick S. 2021. Demand for crop insurance in developing countries: New evidence from India. Journal of Agricultural Economics 72(1): 293-320. https://doi.org/10.1111/1477-9552.12403 |
| spellingShingle | insurance risk management willingness to pay farmers agricultural risk management demand capacity development crop insurance developing countries Ghosh, Ranjan Kumar Gupta, Shweta Singh, Vartika Ward, Patrick S. Demand for crop insurance in developing countries: New evidence from India |
| title | Demand for crop insurance in developing countries: New evidence from India |
| title_full | Demand for crop insurance in developing countries: New evidence from India |
| title_fullStr | Demand for crop insurance in developing countries: New evidence from India |
| title_full_unstemmed | Demand for crop insurance in developing countries: New evidence from India |
| title_short | Demand for crop insurance in developing countries: New evidence from India |
| title_sort | demand for crop insurance in developing countries new evidence from india |
| topic | insurance risk management willingness to pay farmers agricultural risk management demand capacity development crop insurance developing countries |
| url | https://hdl.handle.net/10568/142665 |
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