Farmers' perception and determinants of dairy cattle insurance in Nepal

This study was conducted to identify the factors that motivate the farmers to adopt dairy cattle insurance. This study was based on the field survey conducted in the Chitwan and Nawalparasi districts of Nepal. A total of 160 cross-sectional households sampled were obtained using a simple random sampling technique. Data were collected using a pre-tested interview schedule and focal group discussion in 2017. About 64 percent of respondents were found to get technical assistance for insurance through agro-vets. The study revealed that dairy cattle insurance was an important risk management tool among who experienced cattle loss. Lack of knowledge and information about the benefits of cattle insurance was found to be the major reason for not joining cattle insurance. Risk coverage by insurance was identified as a satisfying factor of insurance in the study. A probit model was used to assess the motivating factors for the adoption of cattle insurance and revealed that cattle breed, access to loan, income from livestock, and a number of cattle had a positive and significant relationship with the adoption of cattle insurance whereas household size and district dummy had a negative and significant relationship with the adoption of cattle insurance. The findings imply for policymakers, insurance companies, and sellers of risk management strategies.