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 Regional Inequalities in Flood Insurance Affordability and Uptake under Climate Change

2020 ◽  
Vol 12 (20) ◽  
pp. 8734
Author(s):  
Max Tesselaar ◽  
W. J. Wouter Botzen ◽  
Toon Haer ◽  
Paul Hudson ◽  
Timothy Tiggeloven ◽  
...  
Keyword(s):  
Climate Change ◽  
Low Income ◽  
Flood Risk ◽  
Economic Change ◽  
Insurance Coverage ◽  
Tipping Point ◽  
Change Scenario ◽  
Flood Insurance ◽  
Insurance Premiums ◽  
Regional Inequalities

Flood insurance coverage can enhance financial resilience of households to changing flood risk caused by climate change. However, income inequalities imply that not all households can afford flood insurance. The uptake of flood insurance in voluntary markets may decline when flood risk increases as a result of climate change. This increase in flood risk may cause substantially higher risk-based insurance premiums, reduce the willingness to purchase flood insurance, and worsen problems with the unaffordability of coverage for low-income households. A socio-economic tipping-point can occur when the functioning of a formal flood insurance system is hampered by diminishing demand for coverage. In this study, we examine whether such a tipping-point can occur in Europe for current flood insurance systems under different trends in future flood risk caused by climate and socio-economic change. This analysis gives insights into regional inequalities concerning the ability to continue to use flood insurance as an instrument to adapt to changing flood risk. For this study, we adapt the “Dynamic Integrated Flood and Insurance” (DIFI) model by integrating new flood risk simulations in the model that enable examining impacts from various scenarios of climate and socio-economic change on flood insurance premiums and consumer demand. Our results show rising unaffordability and declining demand for flood insurance across scenarios towards 2080. Under a high climate change scenario, simulations show the occurrence of a socio-economic tipping-point in several regions, where insurance uptake almost disappears. A tipping-point and related inequalities in the ability to use flood insurance as an adaptation instrument can be mitigated by introducing reforms of flood insurance arrangements.

scholarly journals Comparing the effects of behaviorally informed interventions on flood insurance demand: an experimental analysis of ‘boosts’ and ‘nudges’

2019 ◽  
pp. 1-31 ◽  
Author(s):  
JACOB BRADT
Keyword(s):  
Experimental Analysis ◽  
Sufficient Conditions ◽  
Individual Risk ◽  
Flood Insurance ◽  
Demand For Insurance ◽  
Risk Beliefs ◽  
Contingent Valuation Survey ◽  
Low Probability ◽  
Labor Pool ◽  
Online Labor

AbstractThis paper compares the effects of two types of behaviorally informed policy – nudges and boosts – that are designed to increase consumer demand for insurance against low-probability, high-consequence events. Using previous findings in the behavioral sciences literature, this paper constructs and implements two nudges (an ‘informational’ and an ‘affective’ nudge) and a statistical numeracy boost and then elicits individual risk beliefs and demand for flood insurance using a contingent valuation survey of 331 participants recruited from an online labor pool. Using a two-limit Tobit model to estimate willingness to pay (WTP) for flood insurance, this paper finds that the affective and informational nudges result in increases in WTP for flood insurance of roughly $21/month and $11/month relative to the boost, respectively. Taken together, the findings of this paper suggest that nudges are the more effective behaviorally informed policy in this setting, particularly when the nudge design targets the affect and availability heuristics; however, additional research is necessary to establish sufficient conditions for this conclusion.

Impacts of Climate Change and Remote Natural Catastrophes on EU Flood Insurance Markets

2020 ◽  
Author(s):  
Max Tesselaar ◽  
W. J. Wouter Botzen ◽  
Jeroen C. J. H. Aerts
Keyword(s):  
Climate Change ◽  
High Risk ◽  
Flood Risk ◽  
Insurance Coverage ◽  
Flood Insurance ◽  
Insurance Premiums ◽  
Risk Areas ◽  
The Impact ◽  
Reinsurance Market ◽  
The Eu

<p>Flood insurance coverage can enhance financial resilience of households to changing flood risk caused by climate change. However, due to increasing risk in many areas, premiums are likely to rise, which may cause insurance to become unaffordable for low-income households. This issue can become especially prominent in high-risk areas, when premiums are risk-reflective. Consequently, increasing premiums can reduce the demand for insurance coverage when this is optional, as individuals often underestimate the flood risk they face. After a flood, uninsured households then have to rely on private savings or ex-post government disaster relief. This situation is suboptimal as households may not save sufficiently to cover the damage, and government compensation can be uncertain. Using a modeling approach we simulate unaffordability and uptake of various forms of flood insurance systems in EU countries. To do this, we build upon and advance the “Dynamic Integrated Flood Insurance” (DIFI) model, which integrates flood risk simulations, with an insurance sector and a consumer behavior model. We compute the results using various climatic- and socio-economic scenarios in order to assess the impact of climate- and socio-economic change for flood insurance in the EU. Furthermore, we assess the impact of remote natural disasters on flood insurance premiums in EU countries, which occurs through the global reinsurance market. More specifically, after large natural disasters or compound events occurring outside the EU, which are likely to occur more often due to climate change, reinsurance premiums can temporarily rise as a result of a global “hard” capital market for reinsurers. The higher cost of capital for reinsurers is then transferred to households in the EU through higher flood insurance premiums. We find that rising average, and higher variance, of flood risk towards the end of the century can increase flood insurance premiums, and cause higher premium volatility resulting from global reinsurance market conditions. The rise in premiums increases unaffordability of insurance coverage and results in declining demand for flood insurance. A proposed policy improvement is to introduce a public reinsurance system for flood risk, as governments can often provide cheaper reinsurance coverage and are less subject to volatility on capital markets. Besides this, we recommend a limited degree of premium cross-subsidization to limit the growth of premiums in high-risk areas, and insurance purchase requirements to increase the level of financial protection against flooding.  </p>

Helping Children with Special Needs: Who Receives Tympanostomy Tubes?

2021 ◽  
pp. 000348942098742
Author(s):  
David W. Wassef ◽  
Nehal Dhaduk ◽  
Savannah C. Roy ◽  
Gregory L. Barinsky ◽  
Evelyne Kalyoussef
Keyword(s):  
Developmental Disorders ◽  
Developmental Disorder ◽  
Private Insurance ◽  
Insurance Coverage ◽  
Tube Placement ◽  
Hospital Charges ◽  
Tympanostomy Tube ◽  
Tube Insertion ◽  
Tympanostomy Tubes

Objectives: Tympanostomy tubes can prevent sequelae of otitis media that adversely affect long term hearing and language development in children. These negative outcomes compound the existing difficulties faced by children who are already diagnosed with developmental disorders. This study aims to characterize this subset of children with developmental disorders undergoing myringotomy and tympanostomy tube insertion. Methods: A retrospective review using the Kids’ Inpatient Database (KID) was conducted, with codes from International Classification of Diseases, Ninth Revision used to query data from the years 2003 to 2012 to determine a study group of children with a diagnosis of a developmental disorder undergoing myringotomy and tympanostomy insertion. This group was compared statistically to patients undergoing these procedures who did not have a diagnosed developmental disorder. Results: In total, 21 945 cases of patients with myringotomy with or without tympanostomy tube insertion were identified, of which 1200 (5.5%) had a diagnosis of a developmental disorder. Children with developmental disorders had a higher mean age (3.3 years vs 2.9 years, P = .002) and higher mean hospital charges ($43 704.77 vs $32 764.22, P = .003). This cohort also had higher proportions of black (17.6% vs 12.3%, P < .001) and Hispanic (23.9% vs 20.6%, P = .014) patients, and had lower rates of private insurance coverage (39.6% vs 49%, P < .001). Conclusion: The population of children with developmental disorders undergoing myringotomy or tympanostomy tube placement has a different demographic composition than the general population and faces distinct financial and insurance coverage burdens. Further study should be done to assess if these differences impact long term outcomes.

scholarly journals Flood Risk and Adaptation Strategies for Soybean Production Systems on the Flood-Prone Pampas under Climate Change

Agronomy ◽  
2021 ◽  
Vol 11 (6) ◽  
pp. 1187
Author(s):  
Wouter Julius Smolenaars ◽  
Spyridon Paparrizos ◽  
Saskia Werners ◽  
Fulco Ludwig
Keyword(s):  
Climate Change ◽  
Flood Risk ◽  
Risk Perceptions ◽  
Production Systems ◽  
Adaptation Strategies ◽  
Flood Events ◽  
Climate Data ◽  
Soybean Production ◽  
Drying Trend ◽  
Sowing Season

In recent decades, multiple flood events have had a devastating impact on soybean production in Argentina. Recent advances suggest that the frequency and intensity of destructive flood events on the Argentinian Pampas will increase under pressure from climate change. This paper provides bottom-up insight into the flood risk for soybean production systems under climate change and the suitability of adaptation strategies in two of the most flood-prone areas of the Pampas region. The flood risk perceptions of soybean producers were explored through interviews, translated into climatic indicators and then studied using a multi-model climate data analysis. Soybean producers perceived the present flood risk for rural accessibility to be of the highest concern, especially during the harvest and sowing seasons when heavy machinery needs to reach soybean lots. An analysis of climatic change projections found a rising trend in annual and harvest precipitation and a slight drying trend during the sowing season. This indicates that the flood risk for harvest accessibility may increase under climate change. Several adaptation strategies were identified that can systemically address flood risks, but these require collaborative action and cannot be undertaken by individual producers. The results suggest that if cooperative adaptation efforts are not made in the short term, the continued increase in flood risk may force soybean producers in the case study locations to shift away from soybean towards more robust land uses.

Sign in / Sign up

Export Citation Format

Share Document