Role of Livestock Insurance in Mitigating Financial Impact of Epidemic Outbreaks on Cattle Farms in India

Abstract

Purpose: The aim of the study was to analyze the role of livestock insurance in mitigating financial impact of epidemic outbreaks on cattle farms in India. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: Livestock insurance plays a crucial role in mitigating the financial impact of epidemic outbreaks on cattle farms. Studies consistently show that cattle farms with livestock insurance experience lower financial losses post-epidemic compared to those without insurance, as they are able to recoup a portion of their losses through insurance claims. Moreover, insured cattle farms exhibit a higher recovery rate, enabling them to rebuild their herds more quickly and resume normal operations. Comprehensive livestock insurance policies that address various risk factors, including disease outbreaks and market price fluctuations, are particularly effective in stabilizing farm incomes and enhancing financial resilience. Unique Contribution to Theory, Practice and Policy: Risk management theory, theory of planned behavior (TPB) & prospect theory may be used to anchor future studies on analyze the role of livestock insurance in mitigating financial impact of epidemic outbreaks on cattle farms. Subsidizing premiums can change the economic calculus for farmers, making the decision to invest in insurance more attractive and financially feasible. Encouraging regional risk pools would necessitate legislative support and possibly inter-state agreements to facilitate broader risk management strategies.