Fishermen willingness to participate in an insurance program in Oman

This study is based on a survey of 210 fishermen in Oman to investigate their willingness to pay (WTP) for and enroll in an insurance scheme. The survey was designed to evaluate fishermen's willingness to adopt a safety measures program. Most fishermen showed a low level of prudence except for community controlled measures. Actually, 82% of fishermen fish in groups rather than individually, 98% inform their families about the site where they are going to fish, and 76% listen to the weather forecast before leaving. A linear and a Logit model were used in this study. Results from the linear model show that virtually all the socioeconomic, boat characteristics, attitudinal, and wealth variables are important in explaining the amount of the insurance premium the fishermen are willing to pay for; however, only a few variables were significant in the Logit model. Overall, 52% of the respondents indicated WTP for insurance, which is a clear indication that the demand for insurance is substantial. The estimated annual insurance premium varies between Rials Omani (RO) 23.13 and RO 29.25, depending whether it is a voluntary or legally required. WTP is estimated at RO 18.7.