Crop Insurance Performance in Japan: Some Preliminary Observations

Event: Evidence for Disaster Risk Reduction and Climate Change Adaptation Effectiveness of Insurance: Challenges and Opportunities
Crop Insurance Performance in Japan: Some Preliminary Observations

The presentation talks about the current state of crop insurance in Japan and presents the preliminary findings from the community consultations carried out to assess the barriers in implementing crop insurance in Japan. The presentation concludes the following: Farmers have reported the net benefit from crop insurance in questionnaire surveys (paddy) and in terms of indemnities received (Sugarcane); Subsidy played a major role in farmers finding the insurance profitable/useful (the net positive indemnities was after 55% insurance); Insurance helped in recovery from disaster according to 73% of respondents; No major issues were reported in terms of moral hazard and hence both the insurance company and the farmers prefer indemnity based insurance (corroborated by the least I/P ratio); and there is a considerable resistance from farmers for changing from indemnity based insurance to index based insurance (why fix that is not broken).