Be Happy, Be Loyal? Exploring Drivers for Renewal of Mobile-Delivered Index Insurance.

Agricultural microinsurance is a promising risk management tool for smallholder farmers. However, adoption rates remain low and only a small share of farmers renew their policy after the first period. With the increasing availability of cell phones, mobile-delivered insurance is gaining importance o...

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Publicado en:Journal of Development Studies Vol. 60; no. 6; pp. 831 - 848
Autores principales: Kirchner, Ella, Musshoff, Oliver
Formato: Artículo
Publicado: Taylor & Francis Ltd Jun2024
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Acceso en línea:Ver este registro en EBSCOhost
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      dt: Jun2024
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        10.1080/00220388.2024.2312830
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        atl: Be Happy, Be Loyal? Exploring Drivers for Renewal of Mobile-Delivered Index Insurance.
      aug:
        au:
          Kirchner, Ella
          Musshoff, Oliver
        affil: Department of Agricultural Economics and Rural Development, University of Göttingen, Göttingen, Germany
      su:
        Mali
        Client satisfaction
        Insurance
        Agricultural insurance
        Agriculture
        Microinsurance
      sug:
        subj:
          Client satisfaction
          Insurance
          Mali
          All Other Insurance Related Activities
          Third Party Administration of Insurance and Pension Funds
          Other Insurance Funds
          Other direct insurance (except life, health and medical) carriers
          Direct Property and Casualty Insurance Carriers
          Agricultural insurance
          Agriculture
          Microinsurance
      keyword:
        agricultural microinsurance
        customer satisfaction
        renewal
        risk management
        rural development
        agricultural microinsurance
        customer satisfaction
        renewal
        risk management
        rural development
      ab: Agricultural microinsurance is a promising risk management tool for smallholder farmers. However, adoption rates remain low and only a small share of farmers renew their policy after the first period. With the increasing availability of cell phones, mobile-delivered insurance is gaining importance on the market. As for any agricultural microinsurance, it is essential for the longevity of a mobile-delivered insurance scheme to retain a solid customer base. To date, it is unknown what drives the decision to renew a mobile-delivered agricultural microinsurance policy. We address this question by performing mean comparisons and logistic regressions based on primary data collected from 479 smallholder farmers in Mali who purchased a mobile-delivered weather index-based insurance in 2020. Results show that the level of satisfaction with the insurance product was considerably higher among farmers who renewed. We found low levels of understanding of the product among all clients, but especially among those who did not renew. Both factors were confirmed as drivers for renewal. Consistent with previous findings, receiving a payout had the strongest effect on the decision to renew. We conclude that additional measures to foster client satisfaction as well as to promote understanding of agricultural insurance among smallholder farmers are highly recommended.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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