An Assessment of the Factors Influencing the Uptake of Agricultural Insurance among Farmers in Chipata District
DOI:
https://doi.org/10.5281/zenodo.10807416Keywords:
agricultural insurance, awareness, chipata district, insurance uptakeAbstract
With the low demand for agricultural insurance in Zambia, particularly within the Chipata District farming community, where only 2.5 percent of farmers have insurance coverage. Given the vulnerability of farmers to financial losses due to unpredictable weather patterns and market volatilities, understanding the factors hindering widespread adoption is crucial. The research aimed to explore how demographic factors, pricing, and awareness of insurance concepts influence insurance uptake in agriculture. Using quantitative methods, the study employed binary logistic regression to analyse the relationship between various factors and the adoption of agricultural insurance. It considered demographic characteristics such as age, farm size, type of farming business, farm income, and education level. The research also examined the impact of pricing and awareness on insurance uptake within the farming community. The findings revealed several key insights. Farm income emerged as a significant predictor of insurance uptake, indicating a 138 percent increase for every one-unit increase in income. Education level also demonstrated a significant impact, with higher education correlating with increased insurance uptake. However, factors like farm size and age showed less significant associations with insurance adoption. Interestingly, pricing and affordability did not significantly influence insurance uptake, while awareness of insurance services exhibited a positive relationship with uptake. Moreover, the type of farming business had a significant negative impact on insurance uptake. Based on these findings, the study recommended a multifaceted approach to address the low demand for agricultural insurance. Suggestions included income-enhancement programs, tailored education initiatives for different farm sizes, inclusive promotion strategies across age groups, targeted awareness campaigns, continuous evaluation of pricing strategies, and interventions to correct misconceptions about insurance within various farming businesses. By addressing these dynamics, it was likely that the uptake of agricultural insurance could be improved, providing vital financial protection for farmers in Zambia.
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