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In Pakistan insurance markets regarding livestock insurance are not working efficiently as compare to other countries. Major concern is lack of awareness in livestock farmers (LFs) which been not adopted correctly in Pakistan from last 30 years. Through livestock’s farming; many risks that can reduce the productivity of LFs; like diseases, natural disasters, theft risks, climatic conditions and peril hazards. The main ambition of this study was to study the socio-economic characteristics of LFs as well as to check their level of willingness to pay (WTP) for livestock insurance in district Faisalabad. To achieve the objectives of this study, primary data were collected from livestock farmers through a well-designed questionnaire. Data were collected from 300 livestock farmers (insured & non-insured equally) through convenient sampling from districts (7) Faisalabad in the months of January to March 2018. Contingent valuation method was employed for WTP and dichotomous (YES/NO) and premium level was used to assess the WTP. Mostly insured farmers were approached through insured companies and banks. Three insurance companies were working in Faisalabad right now; namely, Jubilee General Insurance Company Limited, Adamjee Insurance Company Limited and United Insurance Company Limited. For descriptive analysis and econometrics analysis, MS-Excel and SPSS software were used respectively. Majority of the livestock farmers had cows and buffalos. Binary logistic regression model was used for the estimation of WTP of the LFs. The results of the study showed; majority of the LFs were matured in the age and having low level of education and were satisfied regarding income level. The results indicated that; age, education and land holding were significant determinants of WTP. On the basis of results; valuable policies were suggested. Awareness regarding livestock insurance by livestock management authorities and government through electronic media and other sources are much important for the livestock farmers to increase their productivity.

Insured and non-insured livestock farmers’ perception toward livestock insurance- a case study of Faisalabad-Pakistan.