Constraints and potential of livestock insurance schemes: a case study from Vietnam

Fischer, Isabel; Dufhues, Thomas Bernhard; Lemke, Ute

Constraints and potential of livestock insurance schemes: a case study from Vietnam

dc.contributor.author	Fischer, Isabel	de
dc.contributor.author	Dufhues, Thomas Bernhard	de
dc.contributor.author	Lemke, Ute	de
dc.date.accessioned	2024-04-08T08:37:19Z
dc.date.available	2024-04-08T08:37:19Z
dc.date.created	2005-07-05
dc.date.issued	2004
dc.description.abstract	Livelihood systems of poor rural households are often so fragile that a small misfortune can destabilize households for years. Strategies for coping with risk include informal mutual aid agreements and/or formal microinsurance schemes. In developing countries, insurance markets are usually underdeveloped.Nevertheless, if the development path is supported by strong structures and institutions, anonymous markets will, over time, replace informal insurance networks as they are more efficient. In Vietnam, livestock is an important household income source and has additional non-economic functions in the households. For a long time, rural financial institutions in Vietnam financed only a small array of agricultural investments, but these frequently included livestock purchase. The absence of off-farm investment possibilities further promotes investment in livestock production. Failure of an investment, especially when loan-funded, can leave a household in an extremely vulnerable position. Livestock death is considered to be a major factor contributing to poverty. Farmers using credit to purchase livestock face two risks at once: (1) loss of the livestock due tovdisease and subsequently (2) failure of investment. Farmers would like to reduce the uncertainty, but a broad-based livestock insurance scheme does not exist in Vietnam. There are only a few formal and semi-formal schemes with very limited outreach. Thus, access to formal insurance is almost non-existent, and farm households have to rely mainly on informal mutual aid schemes within their social networks to reduce their risks. The objective of this paper is to contribute to the discussion on the general feasibility of a livestock insurance scheme in Vietnam. In this context, the demand for and supply of livestock insurance schemes is discussed. Quantitative (N=322) and qualitative data collection took place between 2001 and 2004. The quantitative data comprise cross-sectional household-level data from three different districts in Northern Vietnam. Four different types of insurance providers were selected for analyzing the supply side: 1. Insurance tied to credit within a state-owned company; 2. Insurance tied to credit within a development project; 3. A state-owned insurance company (which collapsed); 4. A private insurance company. By selecting these different insurance providers, the range of livestock insurance types offered in Vietnam was covered. The main result is that provision of sustainable livestock insurance is hampered principally by unreliable data on livestock mortality and by premia that are set politically at a low evel.	en
dc.identifier.swb	118786725
dc.identifier.uri	https://hohpublica.uni-hohenheim.de/handle/123456789/5016
dc.identifier.urn	urn:nbn:de:bsz:100-opus-935
dc.language.iso	eng
dc.relation.ispartofseries	Forschung zur Entwicklungsökonomie und -politik / Research in development economics and policy; 2004,5
dc.rights.license	publ-ohne-pod	en
dc.rights.license	publ-ohne-pod	de
dc.rights.uri	http://opus.uni-hohenheim.de/doku/lic_ubh.php
dc.subject	Vietnam	en
dc.subject	Livestock insurance	en
dc.subject	Microinsurance	en
dc.subject	Rural finance	en
dc.subject.ddc	630
dc.subject.gnd	Vietnam	de
dc.subject.gnd	Ländlicher Haushalt	de
dc.subject.gnd	Tierproduktion	de
dc.subject.gnd	Landwirtschaftliche Versicherung	de
dc.subject.gnd	Agrarkredit	de
dc.title	Constraints and potential of livestock insurance schemes: a case study from Vietnam	de
dc.type.dcmi	Text	de
dc.type.dini	WorkingPaper	de
local.access	uneingeschränkter Zugriff	en
local.access	uneingeschränkter Zugriff	de
local.bibliographicCitation.publisherPlace	Universität Hohenheim	de
local.faculty.number	2	de
local.institute.number	490	de
local.opus.number	93
local.series.issueNumber	2004,5
local.series.title	Forschung zur Entwicklungsökonomie und -politik / Research in development economics and policy
local.university	Universität Hohenheim	de
local.university.faculty	Faculty of Agricultural Sciences	en
local.university.faculty	Fakultät Agrarwissenschaften	de
local.university.institute	Institute for Agricultural Economics and Social Sciences in the Tropics and Subtropics	en
local.university.institute	Institut für Agrar- und Sozialökonomie in den Tropen und Subtropen	de

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Institut für Tropische Agrarwissenschaften (Hans-Ruthenberg-Institut)