Uptake of index-based crop insurance among smallholder farmers: the case of rice producers in Mvomero- Morogoro
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Date
2022
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Publisher
Institute of Finance Management
Abstract
In spite of agriculture being source of livelihood in Tanzania, yet the sector is faced by
various production risks including climate change and variability. Since crop insurance is an
important strategy against natural hazards and risks, farmers arc encouraged to adopt it in
order to intensify farm productivity. Therefore, this study sought to determine drivers for
uptake of index based crop insurance and inform ways of making crop insurance work for
the smallholder producers. Data were collected using questionnaire from 102 rice-producing
households where weather index-based insurance had been promoted. A total of 5
insurance companies were also selected for KIIs to determine their distribution
models and challenges they face in implementing IBCI. BLRM was used to assess
the drivers to adopt IBCI, Content and descriptive analyses measured distribution
models and challenges insurers face to implement IBCI respectively. The results
show that age of the household(p=0.098), farming experience with IBCI (0.000),
distance to the paved road (p=0.014), and household income (0.010) had significant
influence to farmers’ participation in IBCI. The content analysis from insurance
companies showed that selling covers through local agents was dominant method
they use in reaching their clients, quality and availability of weather data (37.5%)
and capacity building to stakeholders (29.17%) were serious challenges to implement
the programme. These findings therefore highlight the need to create more awareness to farmers on the principles of crop insurance and different products that
exist. Similarly, developing good channels that will adequately suit the farmers needs
and designing of crop insurance products basing on the need of clients, by doing so
the uptake of crop insurance in Tanzania will increase.
Description
Dissertation
Keywords
Climate change, Crop insurance, Smallholder rice producers