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: | , , , , |
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| Format: | Article |
| Language: | English |
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Universitat Politècnica de València
2021-12-01
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| Series: | Economía Agraria y Recursos Naturales |
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| 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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