Analysis of the Factors Hindering the Adoption of Cattle Business Insurance by Farmers in Bone Regency, South Sulawesi Province, Indonesia

Abstract

The objective of this study was to identify the factors that hinder farmers in adopting cattle business insurance.The research was conducted in November and December 2023 in Kahu Sub-district, Bone Regency, and South Sulawesi Province, Indonesia.A total of 68 respondents were included in the study, comprising 34 farmers who had adopted cattle business insurance and 34 farmers who had never adopted the insurance program.The data collection methods employed were observation and interviews.The data were analyzed using the Delphi method, which enabled the opinions of farmers in the field to be obtained, namely those who had utilized insurance and those who had not taken advantage of the Cattle Business Insurance program at all.This approach ensured the acquisition of accurate information complementing the research analysis results.The factors obtained from the Delphi method were then analyzed again using factor analysis tools.The fundamental principle of factor analysis is to simplify the description of data by reducing the number of variables/dimensions and distinguishing priority variables based on the results of the existing ranking.The results demonstrated that five of the nine selected variables exhibited the most significant effect on inhibiting farmers from adopting cattle business insurance.The results of the grouping of variables included in factor 1 (one) are as follows: lack of socialization about cattle livestock business insurance.(X2), the length of the claim approval process (X6), and a lack of awareness of the importance of Cattle Livestock Business Insurance (X8).The variables included in factor 2 (two) are less understood claim procedures (X1) and the short time given at the time of claim (X5).

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