Purpose This paper examines the willingness to pay (WTP) for insurance premiums and identifies the factors that influence it in fruit, greenhouse vegetables and dairy farming. It evaluates Albanian farmers' WTP for insurance products, emphasizing the key farm characteristics and factors that shape this willingness, offering valuable insights for establishing subsidized insurance. Design/methodology/approach The study is based on a structured rapid survey conducted in 2019 with 808 farmers and interviews with key experts and operators in the insurance market. Authors use a double-bounded dichotomous choice contingent valuation technique to gauge WTP for insurance products. Findings Results indicate that farmers' WTP ranges between 1.18 and 2.15% of their income from the main crop, depending on the farming activity, with dairy and greenhouse farmers showing a higher WTP than fruit farmers. WTP is positively related to exposure to climate hazards, engagement in modern market channels and contracting. Research limitations/implications The study used three different types of farms; thus, the findings are not strictly relevant to one activity. Subsequent research could employ choice experiments to evaluate alternative insurance schemes focusing on one sector. Originality/value The paper contributes to the literature by empirically testing various determinants for WTP for which there are no valid findings by using contingent choice analysis to explore WTP for crop insurance.
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Zhllima et al. (2025) studied this question.
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