Factors affecting the uptake of Agriculture Insurance by farmers in Ankole sub-region, South Western Uganda
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Date
2024-11-06
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Insurance Training College
Abstract
Over several decades, agriculture has remained the backbone of the Uganda’s economy. The government of Uganda introduced the agriculture insurance scheme as one of the initiatives to reduce agricultural risks. However, the uptake of agriculture insurance is still low among farmers in Uganda and southwestern Uganda is not an exception. There is a wide knowledge gap on the factors limiting the uptake of agriculture insurance by farmers in rural southwestern Uganda and this study is conducted to fill the gap. The study employed a cross-sectional survey design to collect data from 384 farming households from three selected districts in Ankole sub-region; Kazo, Kiruhura and Isingiro. Data was collected using face-to-face surveys conducted with household heads. In the analysis, descriptive statistics were generated using SPSS version 21.0 and results were presented in frequency tables, graphs and charts. The study findings revealed that the most significant factors affecting uptake of agriculture insurance among farmers in Ankole sub-region are low level of income affecting affordability, lack of education affecting knowledge and awareness, low expectation of risk occurrence, trust issues against insurance providers, limited accessibility of agricultural insurance policies by farmers and stringent terms and conditions surrounding agricultural insurance. The study concluded that the low uptake of agricultural insurance by farmers in Ankole sub region is largely explained by socioeconomic factors and institutional factors. Hence, addressing these challenges is key to improving insurance uptake in the region. The study provided several recommendations that can be adopted by the government, insurance companies and other stakeholders in the agro insurance consortium in order to improve uptake of agriculture insurance. These include farmer education and sensitization, extensive marketing campaigns, increased outreach of insurance offices and increased collaboration between insurance stakeholders.
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Keywords
Factors, Agricultural Insurance, uptake, farmers, Ankole sub-region, Southwestern Uganda