Livestock mortality insurance: development and challenges

Abstract

Purpose

The purpose of this research is examine the development of livestock mortality insurance, and associated challenges, in order to provide an improved understanding regarding the operation of livestock mortality insurance.

Design/methodology/approach

In a many countries, livestock mortality insurance has been either unavailable or underdeveloped. A descriptive analysis is provided regarding the background and development of livestock mortality insurance, along with an example.

Findings

Livestock mortality insurance is considerably more complex than crop insurance, and some of the complexities of livestock mortality insurance include multi‐stage production, consequential losses, occasional large event losses, animal health management, moral hazard, and adverse selection.

Originality/value

This study provides background and development information regarding livestock mortality insurance, and also highlights a number of important differences between livestock mortality insurance and crop insurance.

Citation

Boyd, M., Pai, J. and Porth, L. (2013), "Livestock mortality insurance: development and challenges", Agricultural Finance Review, Vol. 73 No. 2, pp. 233-244. https://doi.org/10.1108/AFR-04-2013-0019