EXPLAINING THE PERCEPTION OF SMALLHOLDERS TOWARDS WEATHER INDEX MICRO-INSURANCE ALONGSIDE RISKS AND COPING STRATEGIES

Abstract

Many studies associate smallholders with negative attitudes towards weather index-based micro-insurance. This article analyses the perceptions of small-scale maize producers towards weather index insurance amid common risks and coping strategies. Findings do not strongly suggest a negative attitude towards weather index insurance among smallholders thus controverting hitherto studies. Rather, the study postulates that other risks facing smallholders and their risk responses disposition may distort and override farmers’ attitude towards weather index insurance. Further, results of the Ordered Probit model revealed that Sex of the household head, size of the household, if a farmer experienced crop loss in the previous farming seasons, off-farm income, if a farmer received compensation, the level of education of the household head, if the household head accessed Credit and group membership had a significant influence on the perception of the smallholders towards the index-based micro insurance scheme.

Keywords

• Perception
• Risk
• Coping strategies
• Weather index insurance