Small farmers’ preferences for weather index insurance: insights from Kenya
Smallholder farmers in developing countries are particularly vulnerable to climate shocks but often lack access to agricultural insurance. Weather index insurance (WII) could reduce some of the problems associated with traditional, indemnity-based insurance programs, but uptake has been lower than e...
| Main Authors: | , , |
|---|---|
| Format: | Journal Article |
| Language: | Inglés |
| Published: |
Springer
2018
|
| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/164830 |
| _version_ | 1855529884442427392 |
|---|---|
| author | Sibiko, Kenneth W. Veettil, Prakashan C. Qaim, Matin |
| author_browse | Qaim, Matin Sibiko, Kenneth W. Veettil, Prakashan C. |
| author_facet | Sibiko, Kenneth W. Veettil, Prakashan C. Qaim, Matin |
| author_sort | Sibiko, Kenneth W. |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Smallholder farmers in developing countries are particularly vulnerable to climate shocks but often lack access to agricultural insurance. Weather index insurance (WII) could reduce some of the problems associated with traditional, indemnity-based insurance programs, but uptake has been lower than expected. One reason is that WII contracts are not yet sufficiently tailored to the needs and preferences of smallholder farmers. This study combines survey and choice-experimental data from Kenya to analyze the experience with an existing WII program and how specific changes in the contractual design might encourage uptake Many smallholders struggle with fully understanding the functioning of the program, which undermines their confidence. Regular provision of relevant rainfall measurements and thresholds would significantly increase farmers’ willingness to pay for WII. Mechanisms to reduce basis risk are also positively valued by farmers, although not to the same extent as higher levels of transparency. Finally, offering contracts to small groups rather than individual farmers could increase insurance uptake Better training on WII and regular communication are needed. Group contracts may help to reduce transaction costs. Farmer groups can also be important platforms for learning about complex innovations, including novel risk transfer products. These concrete results are specific to Kenya; however, they provide some broader policy-relevant insights into typical issues of WII in a small-farm context. |
| format | Journal Article |
| id | CGSpace164830 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2018 |
| publishDateRange | 2018 |
| publishDateSort | 2018 |
| publisher | Springer |
| publisherStr | Springer |
| record_format | dspace |
| spelling | CGSpace1648302025-02-19T14:25:52Z Small farmers’ preferences for weather index insurance: insights from Kenya Sibiko, Kenneth W. Veettil, Prakashan C. Qaim, Matin climatic factors farmers farmers' attitudes kenya small farms Smallholder farmers in developing countries are particularly vulnerable to climate shocks but often lack access to agricultural insurance. Weather index insurance (WII) could reduce some of the problems associated with traditional, indemnity-based insurance programs, but uptake has been lower than expected. One reason is that WII contracts are not yet sufficiently tailored to the needs and preferences of smallholder farmers. This study combines survey and choice-experimental data from Kenya to analyze the experience with an existing WII program and how specific changes in the contractual design might encourage uptake Many smallholders struggle with fully understanding the functioning of the program, which undermines their confidence. Regular provision of relevant rainfall measurements and thresholds would significantly increase farmers’ willingness to pay for WII. Mechanisms to reduce basis risk are also positively valued by farmers, although not to the same extent as higher levels of transparency. Finally, offering contracts to small groups rather than individual farmers could increase insurance uptake Better training on WII and regular communication are needed. Group contracts may help to reduce transaction costs. Farmer groups can also be important platforms for learning about complex innovations, including novel risk transfer products. These concrete results are specific to Kenya; however, they provide some broader policy-relevant insights into typical issues of WII in a small-farm context. 2018-12 2024-12-19T12:54:20Z 2024-12-19T12:54:20Z Journal Article https://hdl.handle.net/10568/164830 en Open Access Springer Sibiko, Kenneth W.; Veettil, Prakashan C. and Qaim, Matin. 2018. Small farmers’ preferences for weather index insurance: insights from Kenya. Agric and Food Secur, Volume 7, no. 1 |
| spellingShingle | climatic factors farmers farmers' attitudes kenya small farms Sibiko, Kenneth W. Veettil, Prakashan C. Qaim, Matin Small farmers’ preferences for weather index insurance: insights from Kenya |
| title | Small farmers’ preferences for weather index insurance: insights from Kenya |
| title_full | Small farmers’ preferences for weather index insurance: insights from Kenya |
| title_fullStr | Small farmers’ preferences for weather index insurance: insights from Kenya |
| title_full_unstemmed | Small farmers’ preferences for weather index insurance: insights from Kenya |
| title_short | Small farmers’ preferences for weather index insurance: insights from Kenya |
| title_sort | small farmers preferences for weather index insurance insights from kenya |
| topic | climatic factors farmers farmers' attitudes kenya small farms |
| url | https://hdl.handle.net/10568/164830 |
| work_keys_str_mv | AT sibikokennethw smallfarmerspreferencesforweatherindexinsuranceinsightsfromkenya AT veettilprakashanc smallfarmerspreferencesforweatherindexinsuranceinsightsfromkenya AT qaimmatin smallfarmerspreferencesforweatherindexinsuranceinsightsfromkenya |