Discriminant factors of flood insurance demand for flood-hit residential properties: a case for Malaysia

2013 ◽  
Vol 8 (1) ◽  
pp. 39-51 ◽  
Author(s):  
G.U. Aliagha ◽  
A.H. Mar Iman ◽  
H.M. Ali ◽  
N. Kamaruddin ◽  
K.N. Ali
Keyword(s):  
Flood Insurance ◽  
Insurance Demand ◽  
Residential Properties

What's at Stake? Understanding the Role of Home Equity in Flood Insurance Demand

2021 ◽  
Author(s):  
Yanjun Liao ◽  
Philip Mulder
Keyword(s):  
Flood Insurance ◽  
Home Equity ◽  
Insurance Demand

scholarly journals Influence of flood risk characteristics on flood insurance demand: a comparison between Germany and the Netherlands

2013 ◽  
Vol 13 (7) ◽  
pp. 1691-1705 ◽  
Author(s):  
I. Seifert ◽  
W. J. W. Botzen ◽  
H. Kreibich ◽  
J. C. J. H. Aerts
Keyword(s):  
The Netherlands ◽  
Flood Risk ◽  
Risk Perceptions ◽  
Private Insurance ◽  
Insurance Coverage ◽  
Individual Risk ◽  
Flood Insurance ◽  
Insurance Demand ◽  
Information Campaigns ◽  
Demand For Insurance

Abstract. The existence of sufficient demand for insurance coverage against infrequent losses is important for the adequate function of insurance markets for natural disaster risks. This study investigates how characteristics of flood risk influence household flood insurance demand based on household surveys undertaken in Germany and the Netherlands. Our analyses confirm the hypothesis that willingness to pay (WTP) for insurance against medium-probability medium-impact flood risk in Germany is higher than WTP for insurance against low-probability high-impact flood risk in the Netherlands. These differences in WTP can be related to differences in flood experience, individual risk perceptions, and the charity hazard. In both countries there is a need to stimulate flood insurance demand if a relevant role of private insurance in flood loss compensation is regarded as desirable, for example, by making flood insurance compulsory or by designing information campaigns.

scholarly journals Risk communication nudges and flood insurance demand

2021 ◽  
pp. 100366
Author(s):  
Peter John Robinson ◽  
W.J. Wouter Botzen ◽  
Sem Duijndam ◽  
Aimée Molenaar
Keyword(s):  
Risk Communication ◽  
Flood Insurance ◽  
Insurance Demand

scholarly journals Factors affecting flood insurance purchase in residential properties in Johor, Malaysia

2014 ◽  
Vol 14 (12) ◽  
pp. 3297-3310 ◽  
Author(s):  
U. G. Aliagha ◽  
T. E. Jin ◽  
W. W. Choong ◽  
M. Nadzri Jaafar ◽  
H. M. Ali
Keyword(s):  
Risk Perception ◽  
Risk Aversion ◽  
Flood Risk ◽  
Flood Insurance ◽  
Factors Affecting ◽  
Subjective Risk ◽  
Residential Properties ◽  
Wilks Lambda ◽  
Integrated Flood Risk Management ◽  
Purchase Rate

Abstract. High-impact floods have become a virtually annual experience in Malaysia, yet flood insurance has remained a grossly neglected part of comprehensive integrated flood risk management. Using discriminant analysis, this study seeks to identify the demand-side variables that best predict flood insurance purchase and risk aversion between two groups of residential homeowners in three districts of Johor State, Malaysia: those who purchased flood insurance and those who did not. Our results revealed an overall 34% purchase rate, with Kota Tinggi district having the highest (44%) and thus the highest degree of flood risk aversion. The Wilks' lambda F test for equality of group means, standardised discriminant function coefficients, structure correlation, and canonical correlation has clearly shown that there are strong significant attribute differences between the two groups of homeowners, based on the measures of objective flood risk exposure, subjective risk perception, and socio-economic cum demographic variables. However, the measures of subjective risk perception were found to be more predictive of flood insurance purchase and flood risk aversion.

scholarly journals Determinants of Probability Neglect and Risk Attitudes for Disaster Risk: An Online Experimental Study of Flood Insurance Demand among Homeowners

Risk Analysis ◽  
2019 ◽  
Vol 39 (11) ◽  
pp. 2514-2527 ◽  
Author(s):  
Peter John Robinson ◽  
W. J. Wouter Botzen
Keyword(s):  
Experimental Study ◽  
Disaster Risk ◽  
Risk Attitudes ◽  
Flood Insurance ◽  
Insurance Demand

scholarly journals Factors affecting flood insurance penetration in residential properties in Johor Malaysia

2014 ◽  
Vol 2 (4) ◽  
pp. 3065-3096 ◽  
Author(s):  
U. Godwin Aliagha ◽  
T. Ewe Jin ◽  
W. Weng Choong ◽  
M. Nadzri Jaafar
Keyword(s):  
Risk Perception ◽  
Risk Aversion ◽  
Flood Risk ◽  
Flood Insurance ◽  
Factors Affecting ◽  
Subjective Risk ◽  
Residential Properties ◽  
Wilks Lambda ◽  
Integrated Flood Risk Management ◽  
Insurance Penetration

Abstract. High impact flood has virtually become an annual experience in Malaysia, yet flood insurance has remained a grossly neglected part of comprehensive integrated flood risk management. Using discriminant analysis, this study seeks to indentify the demand-side variables that best predict flood insurance penetration and risk aversion between two groups of residential homeowners in three districts of Johor State, Malaysia: those who purchased flood insurance and the group that did not. Our result revealed 34% penetration rate with Kota Tinggi district having the highest penetration (44%) and thus, the highest degree of flood risk aversion. The Wilks' Lambda F test for equality of group means, SCDFC, structure correlation and canonical correlation have clearly shown that there are strong significant attribute differences between the two groups of homeowners based on measures of objective flood risk exposure, subjective risk perception, and socio-economic cum demographic variables. However, measures of subjective risk perception were found more predictive of flood insurance penetration and flood risk aversion.

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