Farmer’s response to insurance services in Akwa Ibom State Nigeria: The Nigeria agricultural insurance corporation (NAIC) experience
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The study modelled farmers’ response to uptake of agricultural insurance services in Akwa Ibom State Nigeria, a case study of Nigerian Agricultural Insurance Corporation (NAIC). The specific objectives were to, identify and categorize insurance services available to farmers in the study area, assess the level of farmer’s awareness to agricultural insurance services, estimate the determinants of farmer’s response to agricultural insurance services and identify the problems of access to agricultural insurance services in the study area. A simple random sampling method was used to select respondents for the study. A total of 60 respondents were selected for the study. Questionnaire and interview methods were used for data collection and data obtained were analyzed statistically (descriptive and inferential). The inferential statistical tool used for the analysis was the logit regression model. Results from the study showed that majority of the respondents were female, and were mostly literate (82.6%), most of the respondents had family size of 5-10 persons (61.7%), farming experience with the range of 5-10 years (70.5%). Majority (72.7%) of the insurance packages were agriculture and agricultural related while (27.3%) of the insurance packages were general insurance packages also, farmers were aware of the requirements by NAIC. From the logistic regression model,age and household size were significant. The main constraints were excess bureaucracy in administrative process (3.00) ranked first, Inadequate regulating environment (1.88) ranked second while delay in indemnity by insurance companies (1.40) rank third, were the most severe constraints to accessing agricultural insurance services in the study area, and Lack of/poor farmer’s awareness of NAIC modality (1.33) were ranked third and fourth, respectively. The study recommended that policy makers, agricultural insurance firms, and other actors in agricultural activities should put more effort in awareness creation and symposiums on agricultural insurance packages to enable farmers to be aware of availability of packages that can mitigate their agricultural risks.
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