Precaution Strategy of Moral Hazard Practice in Agricultural Insurance in Indonesia: An Approach of Soft Systems Methodology

This paper uses Soft Systems Methodology (SSM) to formulate strategies prevent moral hazard acts in agricultural insurance Indonesia. Agricultural takes place, mainly, through Rice Crop Insurance and Cattle Insurance. Generally, the that can be performed minimize practice programs are: developing capacity of human resources, improving field communication, enforcing penalties, institutional strengthening, adding new products Islamic insurance. Specifically, this proposes prevention practices done by implementing systems with concept risk-sharing instead risk transfer.