Act of God or ignorance: Perception of rural farmers on effect of climate change and flood insurance

In recent times, there have been increased reports of violent weather occurrences occasioned by climate change such as flooding, and hurricanes, among others. Global efforts have been geared towards avoiding where possible or mitigating where unavoidable the impacts of these extreme climatic conditions. However, studies have found that many people have refused to key into the global proactive efforts aimed at addressing these climate change challenges due to their beliefs that these events are acts of gods (Aofg) rather than natural hazards. Thus, this study using primary data sourced from farmers in the three senatorial districts of Bayelsa State, Nigeria examines the perceptions of farmers on flood hazards and their reception of flood insurance as a tool to mitigate the impact of floods on their livelihood. Furthermore, the perspectives of the insurance providers are sourced to complement the discourse from the farmers. The study reveals that 73.9% of the farmers view floods as a risk worth insuring. On the direction of the impact of their belief, the study using the Structural Equation Model (SEM) confirms that the farmers’ perception of the flood as a natural hazard has a significant effect on recovery strategy, readiness to sell insurance, and willingness to adopt insurance. Conversely, the Act of gods (Aofg) as the cause of the flood has a weak relationship with adopting a recovery strategy, and the readiness of insurance brokers to sell insurance to rural farmers. However, (Aofg) as the cause of flood has a strong relationship with willingness to adopt insurance. Recommendations to the key stakeholders, notably, government, insurance companies, community leaders cum farmers’ associations are documented in the study.