Managing Risk in Livestock Farming: The Role of Insurance Companies

Abstract

This research analyses the risk associated with livestock farming in relation to the utilization of insurance policies and as a risk management mechanism. Ninety percent of the farmers in this study were unaware of the existence of insurance plans; the need for risk protection among vulnerable, low-income and poor farmers is crucial, especially for those who depend on livestock for their livelihood. Data was collected from insurance companies regarding their different plans for protecting farmers and commercial livestock farmers. Not only livestock farmers face risks, but insurance companies as well. Educating farmers about how to manage the risks associated with livestock business is absolutely necessary. In addition, farmers need social protection and interventions from public, private, or charitable organizations.