Constraints to Development of Agricultural Insurance

Mean Score

Rank

High premiums making it unaffordable

4.57

4^th

False claims

1.30

19^th

High loss ratio

2.07

17^th

Lack of policies supporting agricultural insurance development

4.47

6^th

Lack of agricultural insurance legislation

4.63

3^rd

Limited knowledge making farmers unaware of its benefits

4.17

9^th

Negative perceptions of insurance in general

4.03

10^th

Low agricultural production

2.30

16^th

High administrative costs

4.10

11^th

Small size of market

1.97

18^th

Lack of knowledge on how to purchase insurance

3.17

12^th

Lack of knowledge about product development

4.47

6^th

High marketing cost

4.83

1^st

Lack of knowledge on marketing channels

4.30

8^th

Low availability of data

4.40

7^th

Basis risk

2.57

14^th

Limited demand

2.33

15^th

Low participation of commercial banks

4.67

2^nd

Scarcity of data for actuarial determination of important underwriting

4.47

6^th

Lack of qualified personnel in the area of agricultural insurance

4.50

5^th

Belief that insurance companies are only interested in collecting premium and not paying claims

2.80

13^th

N

Kendall’s W

Chi-Square

df

Asymp. Sig

30

0.616

153.995

200.000