Findings from Purdue University Update Knowledge of Crop Insurance (The Influence of Crop Insurance Agents On Coverage Choices: the Role of Agent Competition)

2020 JUN 01 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Investigators publish new report on Agriculture - Crop Insurance. According to news reporting originating from West Lafayette, Indiana, by NewsRx correspondents, research stated, “We examine how competition among crop insurance agents affects coverage choice in the federal crop insurance program. Agents may influence producers’ insurance decisions to maximize their total compensation.”

Financial support for this research came from National Institute of Food andAgriculture.

Our news editors obtained a quote from the research from Purdue University, “We develop a theoretical model of producer-agent interaction to examine how loss potential, agent compensation mechanisms, and market competition affect the coverage level selected. Using crop insurance unit-level datasets from five states, we find evidence that agent market concentration and agents’ market share matter in the insurance coverage decisions of producers but that the economic significance of the influence is relatively small.”

According to the news editors, the research concluded: “Agent influence over coverage level, premium, and liability choice is generally positive but inconsistent across states, which may be attributable to differences in loss risk and agent compensation mechanisms.”

For more information on this research see: The Influence of Crop Insurance Agents On Coverage Choices: the Role of Agent Competition. Agricultural Economics, 2020;():. Agricultural Economics can be contacted at: Wiley, 111 River St, Hoboken 07030-5774, NJ, USA. (Wiley-Blackwell - http://www.wiley.com/; Agricultural Economics - http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1574-0862)

The news editors report that additional information may be obtained by contacting N.D. DeLay, Purdue University, Dept. of Agricultural Economics, West Lafayette, IN 47907, United States. Additional authors for this research include H.H. Chouinard, C.G. Walters and P.R. Wandschneider.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1111/agec.12576. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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