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Abstract

This study analyses numerically an animal disease insurance scheme and how it could be operationalized. We focus on animal producer’s incentives to choose an insurance policy and on the feasibility of the insurance system as a whole. We develop a simple simulation model where the producer chooses whether to take an insurance policy at a given price, and the insurance provider simultaneously decides the price of the scheme. We find that producer interest towards such insurance products is limited. Uptake of insurance could be increased through collective actions such as group insurance or through support for the cost of insurance.

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