Government Support to Agricultural Insurance

Mahul, Olivier; Stutley, Charles

doi:10.1596/978-0-8213-8217-2

Cited by 234 publications

(88 citation statements)

References 15 publications

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“…France, Italy and Spain) also have multi-peril risk insurance schemes that secure against different kinds of weather risks, but yield and revenue insurances are far less developed (Bielza et al, 2008). In contrast, in some non-European countries more sophisticated tools are available (Mahul and Stutley, 2010). The agricultural insurance spectrum ranges from Member States in which the public sector provides no support (private non-subsided insurance schemes), those in which governments heavily subsidise agricultural insurance up to Member States, such as Greece and Cyprus, where the system is public and mandatory (Bielza et al, 2008).…”

Section: Introductionmentioning

confidence: 99%

Adoption of risk management strategies in European agriculture

Asseldonk¹,

Tzouramani²,

Ge³

et al. 2016

Stud. Agr. Econ.

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Given the increased attention to risk management in the European Union's (EU) Common Agricultural Policy (CAP), it is important to monitor and evaluate the rates of adoption by farmers and their determinants over time. Current European agricultural statistics (Farm Accountancy Data Network) capture few indicators that assess such strategies, but complementing data collected during the EU Framework 7 project FLINT have allowed the adoption of risk management strategies and the determinants of farmers' preference for complementary or substitute instruments to be assessed. Adoption rates of risk management instruments such as insurance contracts, price contracts, off-farm income, other types risk of reduction measures and other gainful activities vary signifi cantly across EU Member States and farming types. Econometric analysis indicates that larger farms more often adopt crop insurance, occupational accident insurance, price contracts and diversifi cation but are less likely to adopt credit avoidance and off-farm employment (at a signifi cance level of 1 per cent). For policy analyses these indicators are a step forward for the determination of the net impacts and establishment of counterfactuals in the long term (i.e. time series encompassing also adverse years) for measuring the impact of the CAP at farm level.

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Section: Introductionmentioning

confidence: 99%

Adoption of risk management strategies in European agriculture

Asseldonk¹,

Tzouramani²,

Ge³

et al. 2016

Stud. Agr. Econ.

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show abstract

“…For low and medium income countries the evidence base is much more limited. While there are topical overviews which contain some data on flood insurance, such as the Worldbank's survey of agricultural insurance schemes [37] or the International Labor Organization's Microinsurance Compendium for several countries [38,39,40], there is still a limited understanding of the overall flood insurance status across the developing world. The recently published 'Compendium of disaster risk transfer in developing countries' [10] was developed to address the evidence gap for these new and emerging markets.…”

Section: Evidence Base and Methodologymentioning

confidence: 99%

Flood insurance schemes and climate adaptation in developing countries

Surminski

Oramas-Dorta

2014

International Journal of Disaster Risk Reduction

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Risk transfer, including insurance, is widely recognized as a tool for increasing financial resilience to severe weather events such as floods. The application of this mechanism varies widely across countries, with a range of different types and schemes in operation. While most of the analytical focus has so far been on those markets that have a long tradition of insurance, there is still a clear gap in our understanding of how this mechanism works in a developing country context. This paper assesses 27 insurance schemes that transfer the risk of economic losses arising from floods in low -and middle income countries, focusing on the linkages between financial risk transfer and risk reduction. This aspect is important to avoid the effect of moral hazard and has gained particular relevance in the context of the climate change adaptation discourse, where some scholars and practitioners view insurance as a potential tool not just for current risks, but also to address projected future impacts of a changing climate by incentivizing risk reduction. We therefore look beyond the pure financial risk transfer nature of those 27 insurance schemes and investigate any prevention and risk reduction elements. Our analysis suggests that the potential for utilizing risk transfer for risk reduction is far from exhausted, with only very few schemes showing an operational link between risk transfer and risk reduction, while the effectiveness and implementation on the ground remains unclear. The dearth of linkages between risk reduction and insurance is a missed opportunity in the efforts to address rising risk levels, particularly in the context of climate change. Rising risk levels pose a threat to the insurability of floods, and insurance without risk reduction elements could lead to moral hazard. Therefore a closer linkage between risk transfer and risk reduction could make this a more sustainable and robust tool.

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“…However, in coming years, support for the dairy sector will be reduced and today the dairy sector faces enormous uncertainty about how to develop the dairy market. It can therefore be suggested that support levels have an influence on a farmer's risk attitude (Mahul and Stutley 2010). In addition, Jing et al, (2001) hinted that persons with a higher number of businesses, higher gross sales, and higher numbers of employees are often wealthier and willing to take on more risk.…”

Section: Farmers Individual Characteristicsmentioning

confidence: 99%

Managing Risk in Livestock Farming: The Role of Insurance Companies

Jokhio¹,

Abro²,

Alaali³

2016

International Journal of Financial Research

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This research analyses the risk associated with livestock farming in relation to the utilization of insurance policies and as a risk management mechanism. Ninety percent of the farmers in this study were unaware of the existence of insurance plans; the need for risk protection among vulnerable, low-income and poor farmers is crucial, especially for those who depend on livestock for their livelihood. Data was collected from insurance companies regarding their different plans for protecting farmers and commercial livestock farmers. Not only livestock farmers face risks, but insurance companies as well. Educating farmers about how to manage the risks associated with livestock business is absolutely necessary. In addition, farmers need social protection and interventions from public, private, or charitable organizations.

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Government Support to Agricultural Insurance

Cited by 234 publications

References 15 publications

Adoption of risk management strategies in European agriculture

Adoption of risk management strategies in European agriculture

Flood insurance schemes and climate adaptation in developing countries

Managing Risk in Livestock Farming: The Role of Insurance Companies

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