Risk Management Strategies and Insurance Preference for Apiculturist: Evidence from the Bono Region of Ghana, Nicholas Mensah, Ernest Amrago, Jeffery Asare, Edward Yeboah, Anthony Donkor, Frank Tutu
Nicholas Oppong Mensah
School of Agriculture and Technology, Department of Agricultural Economics, Agribusiness, and Extension, University of Energy and Natural Resources (UENR), Sunyani
Ghana
Email: nicholas.mensah@uner.edu.gh
Ernest Christlieb Amrago
School of Agriculture and Technology, Department of Agricultural Economics, Agribusiness, and Extension, University of Energy and Natural Resources (UENR), Sunyani
Ghana
Email: ernestchristliebamrago@yahoo.com
Jeffery Kofi Asare
School of Agriculture and Technology, Department of Agricultural Economics, Agribusiness, and Extension, University of Energy and Natural Resources (UENR), Sunyani
Ghana
Email: kasare14@gmail.com
Edward Yeboah
Department of Accounting and Finance, KNUST School of Business, Kwame Nkrumah University of Science and Technology (KNUST), Kumasi
Ghana
Email: eddie.yeboah401@gmail.com
Anthony Donkor
School of Agriculture and Technology, Department of Agricultural Economics, Agribusiness, and Extension, University of Energy and Natural Resources (UENR), Sunyani
Ghana
Email: anthony.donkor@uner.edu.gh
Frank Osei Tutu
School of Agriculture and Technology, Department of Agricultural Economics, Agribusiness, and Extension, University of Energy and Natural Resources (UENR), Sunyani
Ghana
Email: frank.tutu@uenr.edu.gh
Purpose: This paper examined the risk management strategies and insurance preference for apiculturist in the Bono region of Ghana.
Design/methodology/approach: One hundred (100) apiculturist were selected for this study, the probit and heteroskedasticity linear regression was employed to analyze the factors that influenced the willingness to pay and willingness to pay amount for apiculture insurance respectively. The contingent valuation method and Kendall’s coefficient of concordance were used to examine the mean amount apiculturist were willing to pay for apiculture insurance as well as their risk management strategies respectively.
Findings: The pressing-farm risk management strategies were regular visits and close watch of the apiary. Farmers preferred combined policy comprising of all-risk and whole-farm public liability and loss of farm income apiculture insurance. Factors such as awareness, farm age, number of beehives, and farming experience had a positive and significant influence on both willingness to pay for apiculture insurance and amount contribution. The mean willingness to pay (WTP) amount was GH¢ 7.259 (US$ 1.234) per beehive/quarterly for apiculture insurance, which translates to a premium rate of 5% of the market value of apiculture.
Originality: The paper provides insights on apiculturist residual risk, mean amount they are willing to pay as well as factors influencing willingness to pay for apiculture which can aid Ghana Agricultural Insurance Pool (GAIP), World Cover, and other interested practitioners to design apiculture insurance for the apiarist.
Keywords: Apiculture; Insurance; Double-Bound CVM, Ghana
