Studies by Kabir Ahmad Sidhu and Co-Authors Describe New Findings in Crop Insurance (Crop insurance as a climate risk management tool: Evidence from three districts of Punjab, Pakistan): Agriculture – Crop Insurance

2026 APR 01 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Research findings on Agriculture - Crop Insurance are discussed in a new report. According to news originating from Islamabad, Pakistan, by NewsRx correspondents, research stated, “Pakistan’s agricultural sector is increasingly vulnerable to climate change-induced shocks, posing serious risks to farm incomes and rural livelihoods. Although crop insurance has been promoted as a key risk-mitigation instrument, and several public and private schemes have been introduced-particularly in Punjab-farmer participation remains strikingly low.”

Financial support for this research came from Princess Nourah bint Abdulrahman University Researchers Supporting Project number.

Our news journalists obtained a quote from the research, “This study provides one of the first systematic assessments of farm households’ perceptions of climate-related risks, their awareness of crop insurance, and the coping mechanisms they adopt in response to climatic shocks. The analysis draws on primary survey data from 324 farmers across 27 mouzas (villages) in the districts of Bahawalpur, Gujrat, and Faisalabad. Descriptive findings reveal a pronounced perception-adoption gap: while 84% of respondents view climate hazards as a major threat to agriculture, only 21% are aware of crop insurance schemes, and fewer than 3% have ever purchased coverage. In the absence of formal insurance, farmers predominantly rely on informal credit networks, valued for their accessibility, flexibility, and trust-based nature. Econometric estimates using logit and probit models indicate that education and financial inclusion significantly increase the likelihood of insurance awareness, underscoring the central role of financial literacy in shaping adaptation decisions. Overall, the results highlight a substantial disconnect between farming communities and formal risk-management institutions in Pakistan.”

According to the news editors, the research concluded: “The study emphasizes the need for localized awareness campaigns, simplified enrolment procedures, credible institutional delivery mechanisms, and innovative public-private partnerships to position crop insurance as an effective resilience-building tool in Pakistan’s climate-vulnerable agricultural sector.”

For more information on this research see: Crop insurance as a climate risk management tool: Evidence from three districts of Punjab, Pakistan. PLOS One, 2026;21(3). PLOS One can be contacted at: Public Library Science, 1160 Battery Street, Ste 100, San Francisco, CA 94111, USA. (Public Library of Science - www.plos.org; PLOS One - www.plosone.org)

The news correspondents report that additional information may be obtained from Kabir Ahmad Sidhu, Securities and Exchange Commission of Pakistan (SECP) NIC Building, Islamabad, Pakistan. Additional authors for this research include Muhammad Khan, Yasir Majeed Waraich and Wafa Ghardallou.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1371/journal.pone.0344460. 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.

The publisher’s contact information for the journal PLOS One is: Public Library Science, 1160 Battery Street, Ste 100, San Francisco, CA 94111, USA.

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