Behavioral motivations for self-insurance under different disaster risk insurance schemes

Mol, Jantsje M.; Botzen, Wouter; Blasch, Julia

doi:10.1016/j.jebo.2018.12.007

Cited by 43 publications

(43 citation statements)

References 82 publications

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“…Another study which was done among Florida households finds a positive correlation between insurance coverage and private mitigation measures [22]. Similarly, a recent study that uses an experiment among Dutch homeowners finds that individuals who buy insurance are more likely to selfprotect against flooding [23].…”

Section: Introductionmentioning

confidence: 94%

Predicting support for flood mitigation based on flood insurance purchase behavior

Shao

Feng

Lin

2019

Environ. Res. Lett.

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What is the decision-making mechanism people rely upon to mitigate flood risk? Applying Bayesian Network modeling to a comprehensive survey dataset for the US Gulf Coast, we find that the overall support for flood mitigation can be inferred from flood insurance purchase behavior (i.e. without insurance versus with insurance purchased mandatorily, voluntarily, or both). Therefore, we propose a theoretical decision-making mechanism composed of two dimensions including informed flood risk and sense of insecurity. The informed flood risk is the primary determinant on one's overall support for flood mitigation. Risk mitigation decisions are largely contingent on the level of risk that is effectively conveyed to individuals. Additionally, sense of insecurity plays a moderate role in determining individuals' overall support for flood mitigation. The sense of insecurity can move people toward overall support for mitigation, but the effect is not as large as the informed risk. Results of this study have fundamental policy implications. The flood risk informed by Federal Emergency Management Agency's flood maps not only provides the compulsory basis for flood insurance purchase but also determines individuals' overall support for flood mitigation. Flood map inaccuracy can immensely mislead individuals' overall risk mitigation decision. Meanwhile, this flood risk mitigation decision-making mechanism inferred from a survey data in the US Gulf Coast needs to be tested and validated elsewhere.

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Section: Introductionmentioning

confidence: 94%

Predicting support for flood mitigation based on flood insurance purchase behavior

Shao

Feng

Lin

2019

Environ. Res. Lett.

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“…For instance, in countries where the government can provide compensation for flood damage, such as the Netherlands, individual investments in reducing flood damage save tax money for compensated victims after flood events. In a previous survey with Dutch homeowners, we elicited social norms with regard to individual flood damage-reducing measures (Mol et al, 2020b). We found that 25% of Dutch homeowners think that their peers would approve if they invested in damage-reducing measures, 50% are indifferent, and the remaining 25% think that their peers would disapprove.…”

Section: Introductionmentioning

confidence: 93%

All by myself? Testing descriptive social norm-nudges to increase flood preparedness among homeowners

Mol

Botzen

Blasch

et al. 2021

Behav. Public Policy

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Nudges based on social norms (norm-nudges) can be compelling behavioral interventions compared with traditional interventions such as taxes and regulations, but they do not work in all circumstances. We tested two empirical norm-nudge frames in an online experiment on taking measures for flood preparedness with large samples of homeowners (N = 1805) in two European countries, to evaluate the possible interactions between norm-nudge effectiveness, individual characteristics, and intercultural differences. We contrasted these norm-nudge treatments with a control and norm-focusing treatment by asking respondents to express their beliefs about what other respondents would do before making a decision relevant to their own payoff. We find no evidence of a treatment effect, suggesting that our social norm-nudges do not affect flood preparedness in the context of a flood risk investment game.

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“…Persepsi bahwa investasi pada mitigasi merupakan tindakan yang efektif, menyebabkan adanya minat yang tinggi terhadap asuransi banjir di Dutch (Mol et al, 2018). Sebaliknya, dengan adanya persepsi rendahnya kemungkinan terjadinya banjir menyebabkan kurangnya keinginan dalam pembelian asuransi di Belanda (Botzen & Van den Bergh, 2012).…”

Section: Pendahuluanunclassified

Stakeholder Power-Interest Analysis of disaster insurance for public infrastructure in Semarang City

Hatmoko

Putri

Hermawan

2021

MKTS

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The use of disaster insurance for public infrastructure is still uncommon in Indonesia, including in Semarang. The success of the adoption of disaster insurance for public infrastructure is inevitably dependent on the acceptance of stakeholders. The aim of this study is to analyse the power and interest of stakeholders towards the use of disaster insurance for public infrastructure in Semarang. Data was collected via interviews and focussed group discussions with stakeholders of Semarang government officials, asset managers, users, etc. The power-interest grid of stakeholders divides the stakeholders based on their levels of power and interests, resulting in four categories, i.e. players, subjects, crowds, and context setters. This research identified the players are the Mayor, Regional Disaster Management Authority, and Regional Financial and Asset Management Authority (5.5%); the subjects category includes The Public Works Department of Human Settlements and Highways, Public Works Department, Trade Department, majority Public Health Center (40.7%); the crowds are Education Department and majority public schools (53.7%); and no context setters (0%). This study found that low trust in the insurer is a major factor causing a lack of interest in the use of insurance. The results of this study are valuable to understand the stakeholder map of Semarang city based on power and interest aspects, and serve as a basis for developing disaster insurance adoption strategies for public infrastructure.

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Behavioral motivations for self-insurance under different disaster risk insurance schemes

Cited by 43 publications

References 82 publications

Predicting support for flood mitigation based on flood insurance purchase behavior

Predicting support for flood mitigation based on flood insurance purchase behavior

All by myself? Testing descriptive social norm-nudges to increase flood preparedness among homeowners

Stakeholder Power-Interest Analysis of disaster insurance for public infrastructure in Semarang City

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