CATTLE INSURANCE MODEL BASED ON GROWING DEGREE DAYS INDEX: A CASE STUDY IN EAST NUSA TENGGARA

• Main Author: Marsaulina, Deborah
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/77566
• Institution: Institut Teknologi Bandung

The livestock sector is one of the leading sectors in East Nusa Tenggara. In 2020, the population of cattle in NTT experienced significant growth, reaching one million heads. Cattle have become an essential asset for driving the local economy in NTT. However, the livestock husbandry pattern heavily relies on nature. Consequently, during the peak of the dry season, farmers suffer immense losses. Hence, cattle insurance is highly necessary to mitigate the financial losses of cattle farmers, particularly during the dry season. One of the solutions is to use index-based livestock insurance. With index-based insurance, the insurance company provides payments to policyholders when specific predefined indices are met, without requiring proof of individual losses. In this case, the drought index will be used as a reference for risk calculations. Claim payments are then made when the risk of drought is present, allowing farmers to anticipate their losses. This thesis aims to create a cattle insurance product based on Growing Degree Days (GDD) index for East Nusa Tenggara, taking into account the understanding of the mechanisms of losses caused by drought disasters. A cattle insurance product based on the growing degree days index was obtained with a loss range of Rp 5.936,24 - Rp 8.176,84 and a total premium range of Rp 5.656,49 - Rp 7.787,47.