Author:Rojan Karki, Arun GC, Krishna Prasad Timsina, Aarati Ghimire

Doi: 10.26480/fabm.01.2024.37.42

This is an open access article distributed under the Creative Commons Attribution License CC BY 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

A study was conducted to assess the agriculture insurance service business in Nepal. Due to the limited number of service providers, a comprehensive census survey was conducted between October and December 2019 in Kathmandu, focusing on the head offices of different insurance companies. The gathered data was coded and analyzed utilizing Microsoft Excel and R-Studio. The study encompassed both descriptive and inferential analyses, leveraging primary and secondary data sources. A Probit model was employed to delve into the sustainability prospects of agriculture insurance, alongside conducting Marginal effect calculations. Key findings revealed that age and education played pivotal roles in the adoption of agriculture insurance. Additionally, three variables—crop weather index, staff mobilization, and interconnection between companies—emerged as highly significant factors. Livestock insurance was recognized for covering a wide range of risks, whereas crop insurance displayed the most extensive array of risks compared to other agricultural insurance practices. Despite its diverse offerings and potential benefits, crop insurance faced challenges in garnering interest from businesses. The study aimed to build upon existing insights within the insurance sector to delineate the conducive environment necessary for the growth and success of agriculture insurance in Nepal.