Precaution Strategy of Moral Hazard Practice in Agricultural Insurance in Indonesia: An Approach of Soft Systems Methodology

This paper uses Soft Systems Methodology (SSM) to formulate strategies to prevent moral hazard acts in agricultural insurance in Indonesia. Agricultural insurance takes place, mainly, through Rice Crop Insurance and Cattle Insurance. Generally, the strategies that can be performed to minimize moral...

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Main Authors: Rahmat Fadhil, Muhammad Yasir Yusuf, T. Saiful Bahri, Hafiizh Maulana, Fakhrurrazi Fakhrurrazi
Format: Article
Language:English
Published: Universitat Politècnica de València 2021-12-01
Series:Economía Agraria y Recursos Naturales
Subjects:
Online Access:https://polipapers.upv.es/index.php/EARN/article/view/15623
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author Rahmat Fadhil
Muhammad Yasir Yusuf
T. Saiful Bahri
Hafiizh Maulana
Fakhrurrazi Fakhrurrazi
author_facet Rahmat Fadhil
Muhammad Yasir Yusuf
T. Saiful Bahri
Hafiizh Maulana
Fakhrurrazi Fakhrurrazi
author_sort Rahmat Fadhil
collection DOAJ
description This paper uses Soft Systems Methodology (SSM) to formulate strategies to prevent moral hazard acts in agricultural insurance in Indonesia. Agricultural insurance takes place, mainly, through Rice Crop Insurance and Cattle Insurance. Generally, the strategies that can be performed to minimize moral hazard practice in agricultural insurance programs are: developing the capacity of human resources, improving field communication, enforcing penalties, institutional strengthening, and adding new products through Islamic agricultural insurance. Specifically, this paper proposes that the prevention of moral hazard practices can be done by implementing Islamic agricultural insurance systems with the concept of risk-sharing instead of risk transfer.
format Article
id doaj-art-045b5280036042adab2d28a6cb5798fe
institution OA Journals
issn 1578-0732
2174-7350
language English
publishDate 2021-12-01
publisher Universitat Politècnica de València
record_format Article
series Economía Agraria y Recursos Naturales
spelling doaj-art-045b5280036042adab2d28a6cb5798fe2025-08-20T02:38:55ZengUniversitat Politècnica de ValènciaEconomía Agraria y Recursos Naturales1578-07322174-73502021-12-01212799910.7201/earn.2021.02.048068Precaution Strategy of Moral Hazard Practice in Agricultural Insurance in Indonesia: An Approach of Soft Systems MethodologyRahmat Fadhil0https://orcid.org/0000-0002-8124-1599Muhammad Yasir Yusuf1T. Saiful Bahri2Hafiizh Maulana3Fakhrurrazi Fakhrurrazi4Universitas Syiah Kuala (USK)Ar-Raniry State Islamic University (UIN AR-RANIRY)Universitas Syiah Kuala (USK)Ar-Raniry State Islamic University (UIN AR-RANIRY)RISPRO-LPDPThis paper uses Soft Systems Methodology (SSM) to formulate strategies to prevent moral hazard acts in agricultural insurance in Indonesia. Agricultural insurance takes place, mainly, through Rice Crop Insurance and Cattle Insurance. Generally, the strategies that can be performed to minimize moral hazard practice in agricultural insurance programs are: developing the capacity of human resources, improving field communication, enforcing penalties, institutional strengthening, and adding new products through Islamic agricultural insurance. Specifically, this paper proposes that the prevention of moral hazard practices can be done by implementing Islamic agricultural insurance systems with the concept of risk-sharing instead of risk transfer.https://polipapers.upv.es/index.php/EARN/article/view/15623islamic agricultural insurancelivestock insurancemoral hazardrice crop insurancesoft systems methodology
spellingShingle Rahmat Fadhil
Muhammad Yasir Yusuf
T. Saiful Bahri
Hafiizh Maulana
Fakhrurrazi Fakhrurrazi
Precaution Strategy of Moral Hazard Practice in Agricultural Insurance in Indonesia: An Approach of Soft Systems Methodology
Economía Agraria y Recursos Naturales
islamic agricultural insurance
livestock insurance
moral hazard
rice crop insurance
soft systems methodology
title Precaution Strategy of Moral Hazard Practice in Agricultural Insurance in Indonesia: An Approach of Soft Systems Methodology
title_full Precaution Strategy of Moral Hazard Practice in Agricultural Insurance in Indonesia: An Approach of Soft Systems Methodology
title_fullStr Precaution Strategy of Moral Hazard Practice in Agricultural Insurance in Indonesia: An Approach of Soft Systems Methodology
title_full_unstemmed Precaution Strategy of Moral Hazard Practice in Agricultural Insurance in Indonesia: An Approach of Soft Systems Methodology
title_short Precaution Strategy of Moral Hazard Practice in Agricultural Insurance in Indonesia: An Approach of Soft Systems Methodology
title_sort precaution strategy of moral hazard practice in agricultural insurance in indonesia an approach of soft systems methodology
topic islamic agricultural insurance
livestock insurance
moral hazard
rice crop insurance
soft systems methodology
url https://polipapers.upv.es/index.php/EARN/article/view/15623
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AT tsaifulbahri precautionstrategyofmoralhazardpracticeinagriculturalinsuranceinindonesiaanapproachofsoftsystemsmethodology
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