Strengthening Farmer Financial Resilience Against Hydrometeorological Disasters Through the Performance Evaluation of National Rice Crop Insurance Schemes
DOI:
https://doi.org/10.70076/apj.v3i3.209Keywords:
Rice Crop Insurance, Farmer Financial Resilience, Hydrometeorological Disasters, Agricultural Insurance, Climate Risk Management, Systematic Literature ReviewAbstract
Hydrometeorological disasters, including floods, droughts, extreme rainfall, and climate variability, increasingly threaten rice production, causing substantial economic losses and weakening farmers’ financial resilience. National rice crop insurance schemes have been introduced as risk management instruments to reduce production losses, stabilize farm income, and strengthen farmers’ adaptive capacity to climate-related disasters. This study evaluates the role and performance of national rice crop insurance schemes in strengthening farmers’ financial resilience against hydrometeorological disasters through a systematic literature review. A qualitative Systematic Literature Review (SLR) was conducted by synthesizing 20 peer-reviewed journal articles published between 2015 and 2026. The studies were retrieved from Scopus, ScienceDirect, SpringerLink, Wiley Online Library, Taylor & Francis, MDPI, Google Scholar, and SINTA-accredited journals using keywords related to rice crop insurance, agricultural insurance, financial resilience, hydrometeorological disasters, climate risk, and disaster risk management. The findings suggest that national rice crop insurance schemes can enhance farmers’ financial resilience by reducing post-disaster income losses, improving access to agricultural credit, encouraging investment in farm inputs, and supporting production recovery following climate-related shocks. However, program effectiveness depends on premium subsidies, claim settlement efficiency, farmer awareness and participation, institutional capacity, accessibility, and integration with broader climate adaptation strategies. Strengthening insurance governance, expanding coverage, adopting digital technologies for damage assessment, and integrating crop insurance with comprehensive disaster risk management policies are essential to improving the long-term financial resilience and sustainability of rice farming systems under increasing hydrometeorological risks.
References
Chen, X.; Jiang, Y.; Wang, T.; Zhou, K.; Liu, J.; Ben, H.; Wang, W. Enhancing Farmer Resilience Through Agricultural Insurance: Evidence from Jiangsu, China. Agriculture 2025, 15, 1473.
Wang, Y.; et al. The Impact of Agricultural Insurance on Farm Household Resilience—Evidence from Survey Data in Three Major Grain-Producing Regions in China. Agriculture 2026, 16, 1473.
Li, H.; Zhao, W.; Wang, W. Can Full-Cost Insurance Enhance Agricultural Economic Resilience? Humanit. Soc. Sci. Commun. 2025, 12, 1600.
Carter, M.R.; Cheng, L.; Sarris, A. Where and How Index Insurance Can Boost the Adoption of Improved Agricultural Technologies. J. Dev. Econ. 2016, 118, 59–71.
Fahad, S.; et al. Crop Production under Drought and Agricultural Insurance: A Review. Sustainability 2018, 10, 1–15.
Sibiko, A.; Qaim, M. Weather Index Insurance and Agricultural Technology Adoption. Agric. Econ. 2017, 48, 7–18.
Budhiasa, A. The Impacts of Multiperil Crop Insurance on Indonesian Rice Farmers and Production. Agric. Econ. 2019, 50, 15–28.
Carter, M.R.; de Janvry, A.; Sadoulet, E.; Sarris, A. Index Insurance for Developing Country Agriculture: A Reassessment. Annu. Rev. Resour. Econ. 2017, 9, 421–438.
Hazell, P.; Pomareda, C.; Valdés, A. Crop Insurance for Agricultural Development: Issues and Experience; Johns Hopkins University Press: Baltimore, MD, USA, 1986.
Chantarat, B.C.K.; Mude, A.G.; Barrett, C.B.; Carter, M.R. Designing Index-Based Livestock Insurance for Managing Asset Risk in Northern Kenya. J. Risk Insur. 2013, 80, 205–237.
Ahmed, S.; Mustafa, M.S. Agricultural Insurance for Disaster Risk Reduction: A Case Study of Malaysia. Int. J. Disaster Risk Reduct. 2020, 42, 101–110.
Nurmalina, A.S.; Siregar, H.; Juanda, B. Risk Mitigation for Rice Production Through Agricultural Insurance in Indonesia. J. Manaj. Agribisnis 2018, 15, 143–154.
Zampieri, M.; Weissteiner, C.; Grizzetti, B.; Toreti, A.; van den Berg, M.; Dentener, F. Estimating Resilience of Annual Crop Production Systems: Theory and Limitations. Agric. Syst. 2020, 181, 102824.
Kumar, S.; Kumar, R.; Sharma, P. Agricultural Insurance and Farmers’ Livelihood Resilience under Climate Change. Clim. Risk Manag. 2021, 34, 100–110.
Greatrex, H.; et al. Scaling Up Index Insurance for Smallholder Farmers: Recent Evidence and Insights; CCAFS Report No. 14; CGIAR Research Program on Climate Change, Agriculture and Food Security: Copenhagen, Denmark, 2015.
Carter, M.R.; Barrett, C.B. The Economics of Poverty Traps and Persistent Poverty: An Asset-Based Approach. J. Dev. Stud. 2006, 42, 178–199.
Birthal, T.; Chand, P.; Negi, J. Weather Risks, Crop Insurance and Farm Income Stability. Agric. Finance Rev. 2019, 79, 511–528.
Elabed, M.; Carter, M.R. Ex-Ante Impacts of Agricultural Insurance: Evidence from Developing Countries. World Dev. 2017, 95, 309–325.
Gulseven, O. Estimating the Demand Factors and Willingness to Pay for Agricultural Insurance. J. Risk Financ. Manag. 2020, 13, 1–15.
Xu, X. Rural Pension System and Farmers’ Participation in Residents’ Social Insurance. 2022.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Agricultural Power Journal
This work is licensed under a Creative Commons Attribution 4.0 International License.
