Assessment of farmers’ willingness to pay for bundled climate insurance solutions in Sri Lanka

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cg.contributor.affiliationInternational Water Management Instituteen_US
cg.contributor.affiliationHector Kobbekaduwa Agrarian Research and Training Institute, Sri Lankaen_US
cg.contributor.donorDeutsche Gesellschaft für Internationale Zusammenarbeiten_US
cg.contributor.donorEuropean Unionen_US
cg.contributor.donorFederal Ministry for Economic Cooperation and Development, Germanyen_US
cg.contributor.donorCGIAR Trust Funden_US
cg.contributor.initiativeClimate Resilienceen_US
cg.coverage.countrySri Lankaen_US
cg.coverage.iso3166-alpha2LKen_US
cg.coverage.regionSouthern Asiaen_US
cg.coverage.subregionAnuradhapuraen_US
cg.coverage.subregionGampahaen_US
cg.coverage.subregionHambantotaen_US
cg.coverage.subregionKurunegalaen_US
cg.coverage.subregionMonaragalaen_US
cg.creator.identifierMohamed Aheeyar: 0000-0002-2117-0602en_US
cg.creator.identifierUpali Amarasinghe: 0000-0002-0088-0648en_US
cg.creator.identifierGiriraj Amarnath: 0000-0002-7390-9800en_US
cg.creator.identifierNiranga Alahacoon: 0000-0003-0984-5176en_US
cg.identifier.doihttps://doi.org/10.5337/2023.222en_US
cg.identifier.iwmilibraryH052415en_US
cg.isbn978-92-9090-957-6en_US
cg.issn1026-0862en_US
cg.placeColombo, Sri Lankaen_US
cg.reviewStatusPeer Reviewen_US
dc.contributor.authorAheeyar, Mohamed M.M.en_US
dc.contributor.authorAmarasinghe, Upali A.en_US
dc.contributor.authorAmarnath, Girirajen_US
dc.contributor.authorAlahacoon, Nirangaen_US
dc.contributor.authorPrasad, S.en_US
dc.contributor.authorDissanayake, A.en_US
dc.date.accessioned2023-12-13T00:48:14Zen_US
dc.date.available2023-12-13T00:48:14Zen_US
dc.identifier.urihttps://hdl.handle.net/10568/135301en_US
dc.titleAssessment of farmers’ willingness to pay for bundled climate insurance solutions in Sri Lankaen_US
dcterms.abstractWith the increasing frequency and intensity of climate-related disasters, several social protection and livelihood resilience tools have been tested to reduce agricultural risks. The findings of this study are based on the initial bundled climate insurance solutions pilot conducted in five districts in Sri Lanka (Anuradhapura, Vavuniya, Monaragala, Kurunegala and Ampara) in 2021 with the support of Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ). The project intervention was designed to reduce production risks and enhance agricultural resilience through the roll-out of an index insurance product bundled with hybrid seeds and mobile-based weather and agronomic advisories. The research assessed farmers' willingness to pay (WTP) for weather index insurance (WII) solutions with bundled choices as a risk transfer tool with due consideration to the diversity and heterogeneity of the farming population. The report informs the scaling opportunities of bundled climate insurance choices, including product design and implementation among smallholder farmers and reduction of production risks in designing and implementing WII products. The study findings confirm the majority of farmers' perceptions of high climate risk, but the degree of risk is variable between areas and different segments of people. Farmers’ age, gender, farming experience, levels of education, land size operated, and household income form the major factors characterizing the diversity and risk exposures. Attention to gender and social equity issues is important in the design and delivery of insurance products so that the benefits of the interventions reach most of the farming population; this can ensure achievement of the larger development objectives of equity and fairness to disadvantaged people including women. Farmers are experiencing high or very high levels of variability in crop yield, input prices and output prices. However, the differences in willingness to experiment with innovations to minimize the risks and adopt risk-taking approaches to minimize production risks and strengthen livelihood resilience indicate the requirement for carefully designed insurance products. Awareness creation is a prerequisite for this intervention to be a sustainable one. About 80% of farmers are willing to enroll in crop insurance programs, but a major inhibiting factor is the lack of trust in insurers. The amount that farmers are willing to pay as an insurance premium is in the range of 1-2% of the sum insured for the majority of farmers. Bundling insurance with farm support services could be the primary strategy for transitioning insurance programs to be a financially viable and sustainable adaptation strategy, and for upscaling these programs.en_US
dcterms.accessRightsOpen Accessen_US
dcterms.available2023en_US
dcterms.bibliographicCitationAheeyar, Mohamed; Amarasinghe, Upali A.; Amarnath, Giriraj; Alahacoon, Niranga; Prasad, S.; Dissanayake, A. 2023. Assessment of farmers’ willingness to pay for bundled climate insurance solutions in Sri Lanka. Colombo, Sri Lanka: International Water Management Institute (IWMI). 37p. (IWMI Research Report 187) [doi: https://doi.org/10.5337/2023.222]en_US
dcterms.extent37p.en_US
dcterms.isPartOfIWMI Research Report 187en_US
dcterms.issued2023-12-07en_US
dcterms.languageenen_US
dcterms.licenseCC-BY-4.0en_US
dcterms.publisherInternational Water Management Instituteen_US
dcterms.subjectweather index insuranceen_US
dcterms.subjectfarmers' attitudesen_US
dcterms.subjectwillingness to payen_US
dcterms.subjectassessmenten_US
dcterms.subjectclimate resilienceen_US
dcterms.subjectcrop insuranceen_US
dcterms.subjectrisk transferen_US
dcterms.subjectclimate servicesen_US
dcterms.subjectseed systemsen_US
dcterms.subjectagricultural risksen_US
dcterms.subjectdisaster risk managementen_US
dcterms.subjectstrategiesen_US
dcterms.subjectinterventionen_US
dcterms.subjectclimate change impactsen_US
dcterms.subjectdroughten_US
dcterms.subjectfloodingen_US
dcterms.subjectcrop damageen_US
dcterms.subjectsmallholdersen_US
dcterms.subjectsocioeconomic aspectsen_US
dcterms.subjectland ownershipen_US
dcterms.subjecthousehold incomeen_US
dcterms.subjectinsurance premiumsen_US
dcterms.subjectgender equalityen_US
dcterms.subjectsocial inclusionen_US
dcterms.subjectawareness-raisingen_US
dcterms.subjectinstitutionsen_US
dcterms.subjectsurveysen_US
dcterms.typeReporten_US

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