German farmers' perceived usefulness of satellite-based index insurance - Insights from a transtheoretical model

Eike Florenz Nordmeyer

No 334557, 97th Annual Conference, March 27-29, 2023, Warwick University, Coventry, UK from Agricultural Economics Society - AES

Abstract: Index insurance is a promising tool to mitigate drought-related income losses in agriculture. Yet, the basis risk of index insurance based on meteorological observations inhibits farmers’ demand. To reduce the basis risk, the integration of satellite data has received research attention. However, farmers’ perceptions of satellite-based index insurance remain unknown. To derive initial insights into German farmers’ perceived usefulness (PU) of satellite-based index insurance, we surveyed 127 German farmers in a risk management context and applied a modified transtheoretical model of behavioral change (TTMC). This revealed detailed information on German farmers’ PU of satellite-based index insurance and its influencing factors. The results indicate that the average farmer perceives satellite-based index insurance as useful. Particularly, a higher educational level in the agricultural context as well as higher trust in index insurance products increases farmers’ PU. Moreover, higher relative climate-related income losses increase farmers’ PU. The results are of importance to insurers interested in the drivers of farmers’ PU of upcoming satellite-based index insurance and offers a starting point for researchers focusing on acceptance of index insurance and satellite data as well as for further applications of the TTMU.

Keywords: Risk and Uncertainty; Research and Development/Tech Change/Emerging Technologies (search for similar items in EconPapers)
Pages: 23
Date: 2023-03
New Economics Papers: this item is included in nep-agr, nep-big and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/334557/files/AES2023_IndexInsurance.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:aesc23:334557

DOI: 10.22004/ag.econ.334557

Access Statistics for this paper

More papers in 97th Annual Conference, March 27-29, 2023, Warwick University, Coventry, UK from Agricultural Economics Society - AES Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().