Investigators from Babes-Bolyai University Release New Data on Crop Insurance (Does Risk Assessment and Specific Knowledge Impact Crop Insurance Underwriting? Evidence From Romanian Farmers): Agriculture – Crop Insurance

2023 SEP 05 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Data detailed on Agriculture - Crop Insurance have been presented. According to news reporting originating in Cluj-Napoca, Romania, by NewsRx journalists, research stated, “Romania is one of the European countries in transition which has undertaken changes to align with the common agricultural policy after the EU adhesion. Our study examines the factors influencing the use of crop insurance as a strategy to mitigate risks by Romanian farmers.”

Funders for this research include Unitatea Executiva pentru Finantarea Invatamantului Superior, a Cercetarii, Dezvoltarii si Inovarii (UEFISCDI), European Social Fund through Romanian Operational Programme Human Capital, project “The Development of Advanced and Applicative Research Competencies in the Logic of STEAM + Health.”

The news reporters obtained a quote from the research from Babes-Bolyai University, “Using a sample of 721 farmers and a multinomial logit model we evaluate the impact of risk perception, risk taking, and specific knowledge, along with the farm’s characteristics and insurance perception variables, on the decision to buy crop insurance. We introduce among the classical influence factors, a novel determinant of crop insurance demand-the specific knowledge. Our empirical findings reveal that crop insurance knowledge and the assessment of risks are key factors for crop insurance buying, while the cultivated area, the trust in the insurer, and the type of culture are also significantly influencing this decision to buy crop insurance. Moreover, the chosen coverage is negatively influenced by the insurance premium adequacy and positively influenced by the farm’s revenue from crops.”

According to the news reporters, the research concluded: “These findings are expected to help governments, policymakers, and insurers from transitional countries to better implement crop insurance as a risk management tool, by subsidizing the policies and raising the awareness of farmers regarding the risk exposure.& COPY; 2023 Economic Society of Australia, Queensland. .”

This research has been peer-reviewed.

For more information on this research see: Does Risk Assessment and Specific Knowledge Impact Crop Insurance Underwriting? Evidence From Romanian Farmers. Economic Analysis and Policy, 2023;79:343-358. Economic Analysis and Policy can be contacted at: Elsevier, Radarweg 29, 1043 Nx Amsterdam, Netherlands.

Our news correspondents report that additional information may be obtained by contacting Simona Laura Dragos, Babes-Bolyai University, Faculty of Economics and Business Administration, Dept. of Finance, Cluj Napoca, Romania. Additional authors for this research include Cristian Mihai Dragos, Codruta Mare, Alexandra-Anca Purcel and Gabriela Mihaela Muresan.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.eap.2023.06.025. 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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