Effects of Financial Literacy and Insurance Knowledge and Perception on Crop Insurance Availment of Rice Farmers in General Mamerto Natividad, Nueva Ecija, 2023
Date
1-2025
Degree
Bachelor of Science in Agricultural Economics
College
College of Economics and Management (CEM)
Adviser/Committee Chair
Ruby Jane C. Estadilla
Committee Member
Geny F. Lapiña, Maria Angeles O. Catelo
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Abstract
Agricultural insurance helps mitigate the effects of financial loss caused by natural disasters, pests, and plant diseases. However, even when the Philippine Crop Insurance Corporation has a full premium subsidy program available for agricultural insurance, availment is still low. The main objective of this study was to assess how financial literacy, insurance knowledge, and perception affect the availment of crop insurance by rice farmers in General Mamerto Natividad, Nueva Ecija.
Data were gathered through personal interviews with 158 randomly selected rice farmers in the municipality. Their financial literacy was assessed in terms of their financial knowledge, behavior, and attitude. The relationship of their socioeconomic characteristics, farm characteristics, and financial inclusion with their financial literacy score was determined through a Tobit regression analysis. It was found that younger farmers, bank account owners, and farmers who maintained more years of relationships with financial institutions had higher financial literacy scores.
Crop-insured respondents displayed a better understanding of the objectives, processes, and coverage of the crop insurance program than the crop-uninsured respondents. However, it was found that topics on indemnity claims, risk coverage, and the insurance coverage amount need better information dissemination for farmers. Crop- insured respondents had a relatively positive perception of the insurance program, while crop-uninsured farmers had a negative perception of the insurance program. The respondents found the processes to be too time-consuming, and the indemnity payment amounts that get disbursed are too small compared to what they spent on rice production.
A binary logistic regression analysis was done to find the significant factors that affect crop insurance availment. The farmers' perception of the insurance program, an endorsement from a trusted source, having insured peers, risk aversion, their predicted financial literacy score, their crop insurance knowledge score, availment of other types of insurance, and previously receiving indemnity payments were found to be significant factors affecting crop insurance availment. It was therefore recommended to conduct educational seminars on the crop insurance program, streamline indemnity claim processes, maintain transparent communication with farmers, and tailor the marketing to and insurance plans of individuals with different risk preferences.
Language
English
LC Subject
Agricultural insurance--Philippines, Financial literacy
Location
UPLB College of Economics and Management (CEM)
Call Number
LG 993.5 2025 A14 F45
Recommended Citation
Feliciano, Mikaela Mae DR, "Effects of Financial Literacy and Insurance Knowledge and Perception on Crop Insurance Availment of Rice Farmers in General Mamerto Natividad, Nueva Ecija, 2023" (2025). Undergraduate Theses. 12309.
https://www.ukdr.uplb.edu.ph/etd-undergrad/12309
Document Type
Thesis
Notes
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