Protecting insecure farmers
The cost of crop insurance comes before the benefit of harvesting the crop, undermining demand for insurance, and thereby increasing farmers' vulnerability to risks. An experiment has revealed that pay-at-harvest premiums remove this gap, increasing demand for crop insurance from 5% to 72%. Even so, the interests of insurance companies also need to be accounted for in terms of contract enforcement in this high-risk sector.
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Date Published
Thursday, January 25, 2018
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