The influence of gender and product design on farmers’ preferences for weather-indexed crop insurance

Akter, Sonia; Krupnik, Timothy J.; Rossi, Frederick J.; Khanam, Fahmida

doi:10.1016/j.gloenvcha.2016.03.010

Cited by 100 publications

(79 citation statements)

References 30 publications

(50 reference statements)

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“…Provider was included to identify insurance buyers' preferred provider for the hypothetical insurance schemes. This attribute addresses concerns raised by research suggesting that low insurance demand partially results from a lack of trust in private providers (Akter et al 2016;Brouwer and Akter 2010).…”

Section: Discrete Choice Experiments Designmentioning

confidence: 85%

“…An attractive feature of a bundled insurance-savings contract is that it offers guaranteed payments regardless of whether outcomes (Stein and Tobacman 2015;Akter et al 2016). Our hypothetical insurance plans offered three choices to potential clients: No Return, and Partial and Full Return.…”

Section: Discrete Choice Experiments Designmentioning

confidence: 99%

“…Despite the potential to reduce risks, farmers' demand for insurance has however been considerably lower than expected (Akter et al 2009;Giné et al 2008). Previous studies identified a range of issues influencing farmers' low insurance uptake, including financial constraints, unfamiliarity with insurance, low financial literacy, and lack of trust in insurance providers, among others (Akter 2012;Binswanger-Mkhize 2012;Clarke and Grenham 2013;Akter et al 2016). We further hypothesize that climate change skepticism may be an important impediment to insurance adoption in low-income Editor: Wolfgang Cramer Electronic supplementary material The online version of this article (doi:10.1007/s10113-017-1174-9) contains supplementary material, which is available to authorized users.…”

Section: Introductionmentioning

confidence: 99%

“…For example, an index may indicate that the threshold for crop damage was not surpassed at a regional level, while specific farmers may nonetheless experience crop losses (Clarke and Grenham 2013). WII is also conceptually complex, disincentivizing smallholders' willingness to invest (Giné et al 2008;Akter et al 2016). This ironically results in Brisk aversion,^in which the targeted smallholder clients, especially those in risk-prone regions whom could benefit from climate change adaptation, do not understand the WII products, causing their preference to remain uninsured (Giné et al 2008).…”

Section: Introductionmentioning

confidence: 99%

“…Yet despite widespread optimism among development practitioners, farmer uptake of both bundled and stand-alone crop WII remains limited (Binswanger-Mkhize 2012). Previous studies indicate that basis risk and design complexity are partly responsible (Binswanger-Mkhize 2012; Akter et al 2016). Additional questions however remain as to other factors, for example farmers' preferences for standard insurance, or potential perception of weather events as preordained and hence unavoidable.…”

Section: Introductionmentioning

confidence: 99%

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Climate change skepticism and index versus standard crop insurance demand in coastal Bangladesh

2017

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This paper investigates if climate change skepticism, farmers' fatalistic beliefs, and insurance plan design influence interest in crop weather insurance. While studies of the influence of fatalism on disaster preparedness are common, the ways in which fatalism influences climate change skepticism, and in turn affects farmers' interest in crop insurance, have not been previously investigated. An additional objective was to understand farmers' preferences for index versus standard insurance options, the former entailing damage compensation based on post-hazard assessment, the latter tying damage compensation to a set of weather parameter thresholds. A discrete choice experiment was conducted with maize farmers on a climate-risk prone island in coastal Bangladesh. Most farmers were insurance averse. Those who chose insurance were however significantly more likely to select standard as opposed to index-based insurance. Insurance demand was significantly and positively correlated with farmers' concern about the adverse livelihood impacts of climate change. Farmers who exhibited fatalistic views regarding the consequences of climate change were significantly less likely to opt for insurance of either kind. These findings imply that the prospect for farmers' investment in insurance is conditioned by their understanding of climate change risks and the utility of adaptation, in addition to insurance scheme design.

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Section: Discrete Choice Experiments Designmentioning

confidence: 85%

Section: Discrete Choice Experiments Designmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Climate change skepticism and index versus standard crop insurance demand in coastal Bangladesh

2017

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Background Research

Vasseur¹,

Thornbush²,

Plante³

2017

Adaptation to Coastal Storms in Atlantic Canada

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Major Climate risks and Adaptation Strategies of Smallholder Farmers in Coastal Bangladesh

Aryal

Sapkota

Rahut

et al. 2020

Environmental Management

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Rural households in South Asia’s coastal deltas face numerous livelihood challenges, including risks posed by climatic variability and extreme weather events. This study examines major climate risks, farmers’ adaptation strategies, and the factors affecting the choice of those strategies using data collected from 630 households in southwestern coastal Bangladesh. Farmers identified cyclones, excessive rain and flooding, and salinity as direct climate risks. Increased crop diseases/pests and livestock diseases were perceived as indirect risks resulting from climatic variability. Farmers used multiple adaptation strategies against those risks such as modifications in farm management, use of savings and borrowing funds from family and neighbors, and periodically reducing household food consumption. Off-farm employment and seeking assistance from governmental as well as non-governmental organizations (NGOs) were also common adaptation strategies. The results show that male-headed households are more likely to change farming practices and reduce consumption compared with female-headed households that conversely tended to take assistance from NGOs as an adaptation strategy. Ownership of land and livestock, as well as farmers’ prior exposure to climate change and educational training, also had a significant effect on the choice of adaptation strategy. Therefore, development interventions and policies that aimed at improving resource endowment and training to farmers on climatic risks and their adaptation strategies can help minimize the impact of climatic risks.

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The influence of gender and product design on farmers’ preferences for weather-indexed crop insurance

Cited by 100 publications

References 30 publications

Climate change skepticism and index versus standard crop insurance demand in coastal Bangladesh

Climate change skepticism and index versus standard crop insurance demand in coastal Bangladesh

Background Research

Major Climate risks and Adaptation Strategies of Smallholder Farmers in Coastal Bangladesh

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