Determining of Potential Demand for Drought Insurance and Effective Factors in IRAN

Document Type : Research Paper

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Abstract

Drought is one of the natural phenomena that occur in our country (Iran) every few years. As an important factor in the off farm management, drought insurance plays an important role in modulating the risk of drought. This research was studied in 2013 and it was trying to be evaluated potential demand for drought insurance. Thus, three climate regions included Kermanshah (rainfall zone), Ghazvin (semi rainfall zone) and Sistan-o- baloochstan (dry zone) was selected in the country. Samples were selected from each zone by three-year statistics (2010-2013). The results showed that, there were demands for drought insurance in Kermanshah and Ghazvin in over 20 and 15 Percentage probabilities, respectively. It was also observed in Sistan baloochestan at all of the drought probability levels. As well as, animal husbandry, poultry, subsidy and off farm incomes act as a negative factors on demand of drought insurance.

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