Universitas Syiah Kuala Researchers Yield New Study Findings on Agricultural Insurance (Precaution Strategy of Moral Hazard Practice in Agricultural Insurance in Indonesia: An Approach of Soft Systems Methodology): Agriculture – Agricultural Insurance

2022 JUL 15 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- New study results on agricultural insurance have been published. According to news originating from the Universitas Syiah Kuala by NewsRx correspondents, research stated, “This paper uses Soft Systems Methodology (SSM) to formulate strategies to prevent moral hazard acts in agricultural insurance in Indonesia.”

The news reporters obtained a quote from the research from Universitas Syiah Kuala: “Agricultural insurance takes place, mainly, through Rice Crop Insurance and Cattle Insurance. Generally, the strategies that can be performed to minimize moral hazard practice in agricultural insurance programs are: developing the capacity of human resources, improving field communication, enforcing penalties, institutional strengthening, and adding new products through Islamic agricultural insurance.”

According to the news editors, the research concluded: “Specifically, this paper proposes that the prevention of moral hazard practices can be done by implementing Islamic agricultural insurance systems with the concept of risk-sharing instead of risk transfer.”

For more information on this research see: Precaution Strategy of Moral Hazard Practice in Agricultural Insurance in Indonesia: An Approach of Soft Systems Methodology. Economia Agraria y Recursos Naturales, 2021,21(2):79-99. The publisher for Economia Agraria y Recursos Naturales is Universidad Politecnica de Valencia.

A free version of this journal article is available at https://doi.org/10.7201/earn.2021.02.04.

Our news journalists report that more information may be obtained by contacting Rahmat Fadhil, Universitas Syiah Kuala (USK).

(Our reports deliver fact-based news of research and discoveries from around the world.)