farmers and insurance companies have asymmetric information that can also increase the price of insurance farmers who take greater risks tend to demand more insurance adverse selections and farmers tend to be less proactive in managing their risks once they are insured moral hazard ad hoc disaster assistance and other support measures from the government also reduce insurance demand multiperil crop insurance provides indemnities after individual yield or production losses due to any peril in a list this is the most widely available type of insurance across countries and it is the one proposed for cattle and rice in the pilot projects in indonesia