Determination of Risk Factors and Breeders Approach for TARSIM Cattle Life Insurance

Abstract

This study was carried out to obtain the opinions of breeders on the use of cattle life insurance, to identify the problems they experienced and to offer solutions that will enable the breeders to use cattle life insurance widely. Agricultural insurance pool (AIP), which was created within the scope of the agricultural insurance law with the decision dated as 14.06.2005 and numbered as 5363 to guarantee the risks threatening the agricultural sector in Turkey, is managed by the agricultural insurance pool management incorporated company (AIPMIC). Similarly, cattle life insurance (CLI) carries out its activities within scope of AIPMIC. In this study, an online survey was conducted with 173 breeders determined by Simple Random Sampling Method in 2021 under Covid-19 pandemic conditions. Questionnaires were sent to personal Whatsapp lines of breeders by Cattle Breeders' Associations. The data were evaluated with IBM SPSS Statistic 20.0 package program. The top five reasons not to use widely of CLI were determined as insufficient income of grower (19.3%), high policy price (15.6%), insufficient information about CLI (11.0%), insufficient amount of damage (10.7%), and insufficient insurance policy coverage (10.2%). As a result; in addition to its strategic importance, the agricultural sector, and therefore the livestock sector, is a sector that is highly affected by climate, economic, social, political, technological and personal risks, and is frequently faced with risks in its production due to its unique structure. However, in this sector, whose production is likely to face risks due to climate change and drought caused by global warming, in the insurance policy to ensure and encourage more breeders to benefit from the BHHS facility for the sustainability of cattle breeding; there is a need to reduce the insurance cost per unit animal to a reasonable level, to reduce the insurance policy cost and to make some other necessary arrangements.