راهبردهای کارآفرینی در کشاورزی (Jul 2024)
Determining the Importance of Price Insurance Attributes for Insurance Companies with an Emphasis on Food Security
Abstract
ies, focusing on the success of these new products and the profitability of insurance companies. Methods: The Choice Experiment method is based on two basic parts, including Lancaster's value theory and Random utility function theory. According to Lancaster, a person benefits from the attributes and characteristics of a product compared to the state where he directly uses the product. Therefore, a change in price leads to a change in the Choice of a set of goods over other goods, which creates a higher cost. The theory of random utility function is the second structural part of the selection test method. Based on this theory, all the components of the utility function that result from people's choices are not directly visible to the researcher. In this research, five attributes, moral hazard, franchise, insurance premium estimate, ability to update insurance premium, and price as the main variables in two levels were considered for investigation. In such a way that the audience has two levels for each of the attributes (has the moral hazard /does not have the moral hazard, has the franchise /does not have the franchise, has the insurance premium estimate /does not have the insurance premium estimates, can update insurance premium /cannot update insurance premium, and the price attribute is up to 3000000 Tomans/up to 3750000 Tomans). To collect the necessary data and information, in February 2024, questionnaires were sent to all active private insurance companies in Mazandaran province, which had experienced experts with more than 3 years of relevant work experience, of which 45 questionnaires were completed. The Choice Experiment was valid. The conditional logit method was used to estimate the model. Hence, to ensure the correct use of the conditional logit method to estimate the model, first, using the Hausman-McFadden test, the hypothesis of independence of irrelevant alternatives (IIA) was examined. For this purpose, first, the model was estimated in an unrestricted form with the presence of all options; Then, by removing one of the options, the model was estimated in a restricted form and according to the x2 (chi-square) statistic, a decision was made about the desired model. If the null hypothesis that there is no difference between the coefficients (in other words, the hypothesis of independence of irrelevant alternatives) is not rejected, the conditional logit method can be used to estimate the model. Results: Based on the obtained results, the value of the chi-square statistic was equal to -1.62, which indicates the confirmation of the null hypothesis and establishing the independence of irrelevant alternatives; Accordingly, conditional logit regression is the most suitable model for investigating the effective attributes of price insurance in its acceptance by insurance companies. According to the results, the sign of the coefficients of the franchise, insurance premium, and price variables is positive and by the theory; Also, the variables of moral hazard and the ability to update have an inverse relationship with the utility of price insurance by insurance companies. The coefficient of the final effect of the moral hazard variable is equal to -0.072, which means that with other variables being constant if the characteristic of a unit's moral hazard increases, the marginal utility or willingness to pay insurers will decrease by 0.072 units. The value of the final effect of the insurance premium variable is 0.098, which states that if the premium attribute increases one unit, in a situation where other attributes are constant, the willingness to pay or the marginal utility of the insurers increases by 0.098 units. Conclusion: Accordingly, the sign of the coefficients of the franchise, insurance premium calculation, and price variables is positive and according to the theory. Also, variables of moral hazard and the ability to update insurance premiums have an inverse relationship with the utility of price insurance by insurers. The effect of the attributes of price insurance is the highest in the form of franchise, insurance premium calculation, moral hazard, and the ability to update insurance premiums. Also, considering that 70% of insurance companies' experts welcome price insurance, including it in the insurance portfolio offered by insurance companies can improve the profitability of insurance companies and on the other hand, improve the business environment related to agriculture if the insurance premium is determined and strengthen food security. By developing price insurance, the policymaker can compensate to a large extent the current damage caused by insurance of agricultural products.
