Reports from Institute of Agricultural Economics and Information Advance Knowledge in Agricultural Insurance (Factors Influencing the Take-Up of Agricultural Insurance and the Entry into the Mutual Fund: A Case Study of the Czech Republic): Agriculture – Agricultural Insurance

2022 SEP 08 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Researchers detail new data in agricultural insurance. According to news originating from Prague, Czech Republic, by NewsRx editors, the research stated, “The objective of the study was to identify the main factors influencing farmers’ willingness to take up agricultural insurance and participate in a mutual fund for non-insurable risks in the Czech Republic.”

Funders for this research include Ministry of Agriculture.

Our news correspondents obtained a quote from the research from Institute of Agricultural Economics and Information: “Responses from 214 representative farms were processed using descriptive statistics, paired * * t* * -tests, binary logistic regression, and contingency analysis. The regression model showed the influences of agricultural area, distrust in insurance companies, the probability of losing more than 20% of production, the price of insurance premiums, and having a developed formal strategy on the likelihood of taking up agricultural insurance. Unlike previous empirical studies, this study did not attempt to look at agricultural insurance as an isolated risk management tool but rather to show the interrelationship between farmers’ decisions to join a mutual fund and their choice of agricultural insurance. Farmers expect most agricultural production risks to become significantly more important. With the ongoing economic crisis in the EU, there is growing pressure to reduce ad hoc public spending on coverage of non-insurable risks and to seek alternative solutions.”

According to the news reporters, the research concluded: “The study also shows the need for a holistic approach to the design of risk management support systems in EU countries.”

For more information on this research see: Factors Influencing the Take-Up of Agricultural Insurance and the Entry into the Mutual Fund: A Case Study of the Czech Republic. Journal of Risk and Financial Management, 2022,15(366):366. (Journal of Risk and Financial Management - http://www.mdpi.com/journal/jrfm). The publisher for Journal of Risk and Financial Management is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/jrfm15080366.

Our news editors report that more information may be obtained by contacting Sofia Kislingerova, Institute of Agricultural Economics and Information, Manesova 75, 120 00 Prague 2, Czech Republic. Additional authors for this research include Jindrich Špicka.

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