Climate-related disasters have had an adverse impact on the aquaculture sector in general and
shrimp farming in Vietnam in particular. Agricultural insurance has been recommended as a risk
management tool for farmers against the impacts of risky agricultural business but has not been
implemented because of barriers to supporting policies, training and expertise activities, and lack
of information about farmers’ willingness to adopt this strategy. This study aims to explore the
factors influencing brackish shrimp farmers to purchase the potential weather-related risks
insurance as a strategy to adapt to climate change in their farming. The primary data are obtained
by surveying 450 brackish shrimp households in 4 provinces (Ca Mau, Bac Lieu, Soc Trang and
Kien Giang) which are the provinces with the largest brackish water shrimp area, yield, and the
number of farmers in the Mekong Delta of Vietnam. 67.77 percent of the sampled brackish
shrimp farmers were found to respond positively to their decision to participate in the potential
agricultural insurance program. Empirical results from the study revealed that brackish shrimp
farmers' interest in hypothetical indemnity insurance related to natural disaster risk was affected
by a range of explanatory variables such as household heads’ age, several experience years in
shrimp farming, farmers being aware of the insurance and production costs in shrimp farming.
As the most significant factors the study finds the natural disaster frequency experience during
the past five years and trust in insurance companies. The findings of this study implicate that
Government should have support policies and increase awareness of the benefits of agricultural
insurance to develop the insurance program