Crop insurance, Fars Province, Iran

A Risk, Policy and Vulnerability (RPV) study proposed a new index for measuring farmers' satisfaction levels with crop insurance based on the American Customer Satisfaction Index (ACSI) as adapted to the specific needs of farming in Fars Province, Iran.

Crops © Mariam S | flickr Creative Commons License


Crop insurance is a major tool for coping with different adversities that occur in farming. It has been innovative in terms of relating the payout to the event, not the loss (so-called index-based insurance).

The model from the new study [1] indicated that the theoretical constructs had adequate reliability and validity. Perceived value and farmers' attitudes toward crop insurance, however, were found to have the strongest effects on farmers' satisfaction levels. The study further confirmed that customer satisfaction is the leading factor determining not only trust in such schemes but also the willingness of farmers to purchase risk financing instruments of this kind.

Figure 1

Path estimates of ACS for crop insurance satisfaction.


[1] Yazdanpanah M, Hochrainer-Stigler S, Yaghoubi Y (2013). Measuring Satisfaction of Crop Insurance: A Modified American Customer Satisfaction Model Approach Applied to Iranian Farmers. International Journal of Disaster Risk Reduction: 4.

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Last edited: 22 May 2014


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