Analysis of herders’ willingness to pay for snow disaster weather-index insurance—A case study in the Gannan Pastoral area

doi:10.11686/cyxb2024046

Abstract

Abstract:

Weather-index insurance is a novel insurance product that has gained widespread recognition globally. However， its application in alpine grassland pastoral areas remains unexplored. Herders’ demand for insurance products directly influences the applicability and promotion potential of index insurance schemes. In this study， we investigated herders’ willingness to pay （WTP） for snow disaster index insurance， and the associated influencing factors， in the Gannan grassland pastoral area using the contingent valuation method （CVM）. The overall aim of this study was to provide scientific support for the development of index insurance as a part of the insurance industry in the study area. The key findings of our study are as follows： 1） The average WTP for index insurance in the study area significantly exceeds the current livestock insurance premium； 2） However， it is still lower than the premiums associated with the offered indexed insurance schemes； 3） Large-scale and specialized herders exhibit a higher WTP for new index insurance products. Together， these results suggest that herders in the study area are willing to pay a higher premium for index insurance products offering enhanced protection. Nevertheless， the high cost of index insurance currently restricts its potential to replace existing lower-cost， high-coverage insurance options. At this stage， it can serve as a complementary product to address the security needs of some large-scale and specialized herding operations. Moving forward， implementing differentiated insurance subsidy policies will be crucial to strengthen the insurance protection capacity within the study area.

Key words: willingness to pay （WTP）, snow disaster weather-index insurance, contingent valuation method （CVM）, Gannan pastoral area

Fu-ning LI, Tian-shu CHAI, Ze-ping QIN, Zeng TANG. Analysis of herders’ willingness to pay for snow disaster weather-index insurance—A case study in the Gannan Pastoral area[J]. Acta Prataculturae Sinica, 2024, 33(12): 13-22.

Figures/Tables 5

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项目Item	触发指数Trigger index	理赔方式Insurance payments indemnity
轻灾保险Light disaster insurance	连续积雪天数达到约定指数4~10 d。The number of days with continuous snow cover reached the trigger index of 4-10 d.	每只羊每天赔付1.8 kg饲料。Each sheep is paid 1.8 kg of feed per day.
中灾保险Medium disaster insurance	连续积雪天数达到约定指数10~20 d。The number of days with continuous snow cover reached the trigger index of 10-20 d.	赔付保险金额的60%。Pay 60% of the insured amount.
重灾保险Serious disaster insurance	连续积雪天数达到约定指数20 d以上。The number of days with continuous snow cover reached the trigger index of more than 20 d.	赔付保险金额的80%。Pay 80% of the insured amount.

项目Item	触发指数Trigger index	理赔方式Insurance payments indemnity
轻灾保险Light disaster insurance	连续积雪天数达到约定指数4~10 d。The number of days with continuous snow cover reached the trigger index of 4-10 d.	每只羊每天赔付1.8 kg饲料。Each sheep is paid 1.8 kg of feed per day.
中灾保险Medium disaster insurance	连续积雪天数达到约定指数10~20 d。The number of days with continuous snow cover reached the trigger index of 10-20 d.	赔付保险金额的60%。Pay 60% of the insured amount.
重灾保险Serious disaster insurance	连续积雪天数达到约定指数20 d以上。The number of days with continuous snow cover reached the trigger index of more than 20 d.	赔付保险金额的80%。Pay 80% of the insured amount.

变量 Variable	变量定义或赋值方法 Definition and assignment	平均 Mean	标准差Standard deviation （SD）
牧户受教育程度Education of herders	1=没有受过教育No education； 2=小学Primary school； 3=初中Junior high school； 4=高中或中专High school or technical secondary school； 5=大学及以上College and above	1.56	0.75
牧户从事畜牧业的时间Time of herders engaged in animal husbandry	牧户从事畜牧业的时间Time of herders engaged in animal husbandry （Month）	8.80	4.91
家庭中是否有政府工作人员Whether there are government employees in the family or not	1=有Yes； 0=没有No	0.09	0.27
家庭人口数Number of family members	家庭人口总数Number of family members	5.68	1.97
家庭是否以畜牧业为主要生计Whether the family relies on animal husbandry as its main livelihood	1=是Yes；0=否No	0.77	0.43
羊的数量The number of sheep	养殖羊的总数Total number of sheep （sheep-unit）	52.31	81.39
畜牧业纯收入Net income of animal husbandry	畜牧业纯收入Net income of animal husbandry （×10⁴ CNY）	0.37	10.42
承包草场面积Contracted grassland area	家庭承包草场面积The area of household contracted grassland （×10⁴ hm²）	0.19	0.46

变量 Variable	变量定义或赋值方法 Definition and assignment	平均 Mean	标准差Standard deviation （SD）
牧户受教育程度Education of herders	1=没有受过教育No education； 2=小学Primary school； 3=初中Junior high school； 4=高中或中专High school or technical secondary school； 5=大学及以上College and above	1.56	0.75
牧户从事畜牧业的时间Time of herders engaged in animal husbandry	牧户从事畜牧业的时间Time of herders engaged in animal husbandry （Month）	8.80	4.91
家庭中是否有政府工作人员Whether there are government employees in the family or not	1=有Yes； 0=没有No	0.09	0.27
家庭人口数Number of family members	家庭人口总数Number of family members	5.68	1.97
家庭是否以畜牧业为主要生计Whether the family relies on animal husbandry as its main livelihood	1=是Yes；0=否No	0.77	0.43
羊的数量The number of sheep	养殖羊的总数Total number of sheep （sheep-unit）	52.31	81.39
畜牧业纯收入Net income of animal husbandry	畜牧业纯收入Net income of animal husbandry （×10⁴ CNY）	0.37	10.42
承包草场面积Contracted grassland area	家庭承包草场面积The area of household contracted grassland （×10⁴ hm²）	0.19	0.46

变量Variable	回归系数Coefficient	标准误Standard error
牧户受教育程度Education of herders	-1.900	2.208
牧户从事畜牧业的时间Time engaged in animal husbandry	1.240*	0.626
家庭中是否有政府工作人员Whether there are government employees in the family or not	-17.612**	6.886
家庭人口数Number of family members	-1.903**	0.823
家庭是否以畜牧业为主要生计Whether the family relies on animal husbandry as its main livelihood	-18.106**	7.380
羊的数量The number of sheep	0.034*	0.019
畜牧业纯收入Net income of animal husbandry	0.136	0.144
承包草场面积Contracted grassland area	-2.480	3.378
常数项Constant term	26.062***	7.095