TY  - CPAPER 
AB  - Agricultural microinsurance are a promising risk management tool for smallholder farmers. However, adoption rates remain low and only a small share of farmers renews their policy after the first period. Yet, it is essential for the sustainability of an insurance scheme to retain a solid customer base. To date, it is largely unknown what drives the decision to renew an agricultural microinsurance policy. We address this question by performing mean comparisons and logistic regressions based on collected primary data on 479 smallholder farmers in Mali who purchased a weather index-based insurance in 2020. Results show low levels of understanding of the product among all clients, but especially among those who did not renew. Similarly, the level of satisfaction was considerably higher among clients who renewed. Both factors were confirmed as drivers for renewal. Yet, in line with previous findings, the receipt of a payout had the strongest effect on the renewal decision whereas harvest loss in the most recent season was not having an impact. We conclude that additional efforts to foster client satisfaction as well as to promote understanding of agricultural insurance among smallholder farmers are highly recommended.
AU  - Kirchner, Ella
AU  - Musshoff, Oliver
DA  - 2022-04
DA  - 2022-04
DO  - 10.22004/ag.econ.321216
DO  - doi
ID  - 321216
KW  - Agricultural Finance
KW  - Risk and Uncertainty
KW  - agricultural microinsurance
KW  - microfinance
KW  - risk management
KW  - rural development
L1  - https://ageconsearch.umn.edu/record/321216/files/Ella_Kirchner_Tagungsbeitrag%20AES_EkirchnerOMusshoff.pdf
L2  - https://ageconsearch.umn.edu/record/321216/files/Ella_Kirchner_Tagungsbeitrag%20AES_EkirchnerOMusshoff.pdf
L4  - https://ageconsearch.umn.edu/record/321216/files/Ella_Kirchner_Tagungsbeitrag%20AES_EkirchnerOMusshoff.pdf
LA  - eng
LA  - English
LK  - https://ageconsearch.umn.edu/record/321216/files/Ella_Kirchner_Tagungsbeitrag%20AES_EkirchnerOMusshoff.pdf
N2  - Agricultural microinsurance are a promising risk management tool for smallholder farmers. However, adoption rates remain low and only a small share of farmers renews their policy after the first period. Yet, it is essential for the sustainability of an insurance scheme to retain a solid customer base. To date, it is largely unknown what drives the decision to renew an agricultural microinsurance policy. We address this question by performing mean comparisons and logistic regressions based on collected primary data on 479 smallholder farmers in Mali who purchased a weather index-based insurance in 2020. Results show low levels of understanding of the product among all clients, but especially among those who did not renew. Similarly, the level of satisfaction was considerably higher among clients who renewed. Both factors were confirmed as drivers for renewal. Yet, in line with previous findings, the receipt of a payout had the strongest effect on the renewal decision whereas harvest loss in the most recent season was not having an impact. We conclude that additional efforts to foster client satisfaction as well as to promote understanding of agricultural insurance among smallholder farmers are highly recommended.
PY  - 2022-04
PY  - 2022-04
T1  - Client satisfaction and product understanding as drivers for insurance renewal – A case study in Mali
TI  - Client satisfaction and product understanding as drivers for insurance renewal – A case study in Mali
UR  - https://ageconsearch.umn.edu/record/321216/files/Ella_Kirchner_Tagungsbeitrag%20AES_EkirchnerOMusshoff.pdf
Y1  - 2022-04
ER  -