Volume 1, Issue 2 (1-2024)
Agric Mark Econ 2024, 1(2): 136-152 |
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Ardestani M, khaledi K. (2024). Examining Government Support Policies for Agricultural Insurance with a Focus on Iran. Agric Mark Econ. 1(2), 136-152. doi:10.61186/ame.1.2.136
URL: http://ame.sanru.ac.ir/article-1-60-en.html
URL: http://ame.sanru.ac.ir/article-1-60-en.html
1- Agricultural Planning, Economic and Rural Development Research Institute (APERDRI),
Abstract: (764 Views)
Extended Abstract
Introduction and Objective: Agriculture is a risky activity and a wide range of risks affects the income of farmers. Among the many methods of risk management, agricultural insurance has a special place as a non-price support tool. The inability and unwillingness of the private sector to carry out insurance operations in agriculture has made the involvement of the government sector in the study, design and implementation of agricultural insurance programs inevitable. The current notice has been written with the aim of providing a clear picture of the government's support for agricultural insurance, calculating insurance indicators and defining the appropriate government support mechanism for agricultural insurance in Iran.
Material and Methods: The study is analytical-descriptive and the collection of required statistics and information is based on documentary (library) sources. The global experience of government support for agricultural insurance has been analyzed mainly based on the studies of the World Bank in 2010 and the situation of Iran's agricultural insurance using internal information sources in the last decade.
Results: The investigation of government support for agricultural insurance in selected countries showed that, first, proper implementation of agricultural insurance is not possible without government support. Secondly, the most common type of government support for agricultural insurance in the countries under review is the payment of insurance premium subsidies, and in India, Canada, the United States of America, and China, more than half of the insurance premiums have been paid by the government. Thirdly, the government directly provides additional support in the form of establishing an agricultural insurance law, payment of subsidies for farmers' training, payment of subsidies for product research and development, government reinsurance, payment of subsidies for administrative and operational costs of insurers, exemptions Tax on the sale of agricultural insurance premiums, setting fair and affordable rates for insurance products, paying additional subsidies to purchase group insurance policies, etc. In Iran, in the last decade (2012-2022), on average, 75% of insurance premiums have been paid by the government. The high share of executive costs in the insurance program is a confirmation of the costly management of the state agricultural insurance operations in the country. The loss ratio based on the total insurance premium (average 91 percent), farmer loss ratio (average 291 percent), executive expenses ratio (average 59) and Hazel ratio (average 350), all indicate the high dependence of Iran's agricultural insurance on the support It is government..
Conclusion: Payment of about 75% of insurance premium subsidy by the government, payment of high compensations due to the frequency and intensity of risks, lack of domestic reinsurance market and lack of utilization of the capacity of international reinsurance market are all reasons for the continuation of targeted support and Government efficiency of agricultural insurance has made it necessary in Iran as in other selected countries. In this regard, on creating changes in the organizational structure of the agricultural insurance fund with the participation of the private sector, reviewing the insurance plan, accurate pricing of the insurance product according to the risks, targeting the government subsidies for agricultural insurance, using the insurance capacity. Private and international reliance and reduction of executive and operational costs are emphasized.
Type of Study: Research |
Received: 2023/12/27 | Accepted: 2024/03/9
Received: 2023/12/27 | Accepted: 2024/03/9
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