scholarly journals California earthquake insurance unpopularity: the issue is the price, not the risk perception

2019 ◽  
Author(s):  
Adrien Pothon ◽  
Philippe Gueguen ◽  
Sylvain Buisine ◽  
Pierre-Yves Bard
Keyword(s):  
Risk Perception ◽  
Insurance Premium ◽  
Data Sources ◽  
Risk Awareness ◽  
Earthquake Insurance ◽  
New Model ◽  
Earthquake Losses ◽  
Widespread Belief ◽  
Gathering Data ◽  
Annual Premium

Abstract. Despite California is a highly seismic prone region, most of homeowners are not covered against this risk. This study analyses the reasons for homeowners to purchase or not an insurance to cover earthquake losses, with application in California. A dedicated database is built from 18 different data sources about earthquake insurance, gathering data since 1921. A new model is developed to assess the take-up rate based on the homeowners’ risk awareness and the average annual insurance premium amount. Results suggest that only two extreme situations would lead all owners to cover their home with insurance: (1) a widespread belief that a devastating earthquake is imminent, or alternatively, (2) a massive decrease in the average annual premium amount by a factor exceeding 6 (from $980 to $160, USD 2015). Considering the low likelihood of each situation, we conclude from this study that new insurance solutions are necessary to fill the protection gap.

scholarly journals California earthquake insurance unpopularity: the issue is the price, not the risk perception

2019 ◽  
Vol 19 (8) ◽  
pp. 1909-1924 ◽  
Author(s):  
Adrien Pothon ◽  
Philippe Gueguen ◽  
Sylvain Buisine ◽  
Pierre-Yves Bard
Keyword(s):  
Risk Perception ◽  
Insurance Premium ◽  
Data Sources ◽  
Risk Awareness ◽  
Earthquake Insurance ◽  
New Model ◽  
Earthquake Losses ◽  
Widespread Belief ◽  
Gathering Data ◽  
Annual Premium

Abstract. Despite California being a highly seismic prone region, most homeowners are not covered against this risk. This study analyses the reasons for homeowners to purchase insurance to cover earthquake losses, with application in California. A dedicated database is built from 18 different data sources about earthquake insurance, gathering data since 1921. A new model is developed to assess the take-up rate based on the homeowners’ risk awareness and the average annual insurance premium amount. Results suggest that only two extreme situations would lead all owners to cover their home with insurance: (1) a widespread belief that a devastating earthquake is imminent, or alternatively (2) a massive decrease in the average annual premium amount by a factor exceeding 6 (from USD 980 to 160, 2015 US dollars). Considering the low likelihood of each situation, we conclude from this study that new insurance solutions are necessary to fill the protection gap.

An analysis of the California earthquake insurance market since its early stages

2020 ◽  
Author(s):  
Adrien Pothon ◽  
Philippe Guéguen ◽  
Sylvain Buisine ◽  
Pierre-Yves Bard
Keyword(s):  
San Francisco ◽  
Insurance Premium ◽  
Insurance Market ◽  
Insurance Company ◽  
Earthquake Insurance ◽  
Funding Sources ◽  
Risk Monitoring ◽  
Insurance Cover ◽  
Widespread Belief ◽  
Insurance Model

<p>Despite California being a highly seismic prone region, around 85% of people are not covered against this risk. This situation results from more than 100 years of evolution since the first earthquake insurance cover after the 1906 San Francisco earthquake. To understand this evolution, two analyses have been performed: the first one at the market level and the second one at the insured people level.</p><p>At the market level, as many variables as the premium amount, the risk monitoring, the funding sources of prevention plans, the insurance company’s solvency and the attractiveness of earthquake insurance solutions, have been investigated. By cross-analysing data collected and analysing the evolution with time, three different phases have been identified in the earthquake insurance market history.</p><p>At insured people level, a database is built from 18 different data sources about earthquake insurance, gathering data since 1921. Next, a new model is developed to assess the rate of homeowners insured against this risk, according to their risk awareness and the average annual insurance premium amount.</p><p>These two analyses are finally used to investigate in which extent the California earthquake insurance market could reach again 40% of people insured, like in 1993 and 1996. Even if results show that a widespread belief that a devastating earthquake is imminent could bring such a situation, only a new earthquake insurance model will allow to achieve this goal in a sustainable way. In that respect, the efficiency of two current initiatives to bring more people to get an earthquake insurance: "Earthquake Brace and Bolt" and "JumpStart Recovery", is assessed at the light of the analyses performed previously in this paper.</p>

scholarly journals MENENTUKAN FORMULA CADANGAN PREMI ASURANSI JIWA LAST SURVIVOR MENGGUNAKAN METODE NEW JERSEY

2019 ◽  
Vol 8 (4) ◽  
pp. 264
Author(s):  
I GUSTI AGUNG GEDE DWIPAYANA ◽  
I NYOMAN WIDANA ◽  
KARTIKA SARI
Keyword(s):  
New Jersey ◽  
Life Insurance ◽  
Insurance Premium ◽  
First Year ◽  
Premium Payment ◽  
Second Year ◽  
Annual Premium

Last survivor life insurance is a type of life insurance for two or more people, with premium payment up to the last death of the insured and at that time also provide the benefit from the insurer. The purpose of this research was to determine the formula for last survivor life insurance premium reserve using New Jersey method. To calculate the reserve: first we determine the benefit, and then the annuity and finnaly the annual premium. The premium reserve value in the New Jersey method on first year is zero. The premium reserve in the New Jersey method starts in the second year, for  years, with  where n represents the term of the insurance participant’s contract.

Farmer preference for swine price index insurance

2019 ◽  
Vol 12 (1) ◽  
pp. 122-139
Author(s):  
Yanyuan Zhang ◽  
Wuyang Hu ◽  
Jintao Zhan ◽  
Chao Chen
Keyword(s):  
Risk Perception ◽  
Local Governments ◽  
Price Index ◽  
Probit Model ◽  
Insurance Premium ◽  
Index Insurance ◽  
Agricultural Cooperatives ◽  
Content Type ◽  
Agricultural Income ◽  
Willingness To Buy

Purpose The purpose of this paper is to examine farmer preference for swine price index insurance in China focusing on whether Chinese farmers are willing to consider purchasing swine price index insurance, the premium they would like to pay, as well as the extend of heterogeneity in their preferences. Design/methodology/approach A sample of 443 swine farmers in Jiangsu and Henan provinces is collected and analyzed. An Ordered Probit model is used to analyze farmers’ willingness to buy swine price index insurance and a Tobit model is used to analyze farmers’ willingness to pay (WTP) for insurance premium. Findings Results show that some farmers are not willing to purchase swine price index insurance. However, WTP of majority of farmers is higher than what is prescribed in the current insurance policy. Factors affecting farmers’ willingness to buy varied between two provinces. Experience in purchasing traditional swine insurance and risk perception affect farmers’ willingness to buy in Jiangsu province, while joining agricultural cooperatives, experience in purchasing traditional swine insurance and understanding of swine price index insurance affect farmers’ willingness to buy in Henan province. Farmers with non-agricultural income, longer years of swine breeding, higher degree of specialization, experience in purchasing traditional insurance, higher understanding of swine price index insurance and trust in local governments, stronger risk perception and risk preference, and not being a member of agricultural cooperatives have higher WTP. Originality/value Few studies have been conducted on swine price index insurance in China. Even less information, to the authors’ knowledge, is available on farmer preferences. The research provides a timely contribution to understand the Chinese swine price index insurance market from the perspectives of farmers.

Understanding clients’ experience of trust and distrust in dwelling fit-out projects

2019 ◽  
Vol 26 (3) ◽  
pp. 444-461 ◽  
Author(s):  
Yan Ning ◽  
Minjie Feng ◽  
Jin Feng ◽  
Xiao Liu
Keyword(s):  
Data Sources ◽  
Response Strategy ◽  
Research Strategies ◽  
Cost Performance ◽  
Content Type ◽  
Face To Face ◽  
Multiple Data ◽  
The Face ◽  
Gathering Data ◽  
Proper Balance

PurposeDrawing upon the ambivalence literature, the purpose of this paper is to explore clients’ ambivalence caused by the co-existence of trust and distrust and to investigate how clients respond to the ambivalence.Design/methodology/approachQualitative research strategies using multiple data sources were adopted. Face-to-face interviews were the major method for gathering data. Additional data sources included archival cases, official reports, regulations and rules and survey reports.FindingsThe results identified that clients’ ambivalence occurs in the face of the co-existence of trust and distrust. Clients might trust contractors on certain aspects and distrust of others or when they realize that trust and/or distrust have mixed merits and demerits. As a response strategy to the ambivalence, clients may choose to oscillate between trust and distrust in accordance with contractors’ quality and cost performance.Research limitations/implicationsOne limitation is that dwelling fit-out projects are generally small in size. Parties in small size projects might have different mindsets than large projects. Thus, it is worthwhile to extend the framework to the context of large projects.Practical implicationsManagers or clients should be aware of the double-edged sword nature of trust and distrust. To deal with the ambivalence resulting from co-existence of trust and distrust, a proper balance of trust and distrust might be effective.Originality/valueThis study contributes an ambivalence approach to the trust research in project management.

scholarly journals Geo-hydrological and seismic risk awareness at school: Emergency preparedness and risk perception evaluation

2019 ◽  
Vol 40 ◽  
pp. 101280 ◽  
Author(s):  
Anna Elisa Bandecchi ◽  
Veronica Pazzi ◽  
Stefano Morelli ◽  
Luca Valori ◽  
Nicola Casagli
Keyword(s):  
Risk Perception ◽  
Emergency Preparedness ◽  
Seismic Risk ◽  
Risk Awareness

scholarly journals Does Risk Awareness of COVID-19 Affect Visits to National Parks? Analyzing the Tourist Decision-Making Process Using the Theory of Planned Behavior

2021 ◽  
Vol 18 (10) ◽  
pp. 5081
Author(s):  
Bo-Hyun Seong ◽  
Chang-Yu Hong
Keyword(s):  
Decision Making ◽  
Risk Perception ◽  
Theory Of Planned Behavior ◽  
Risk Reduction ◽  
Planned Behavior ◽  
National Parks ◽  
Decision Making Process ◽  
Risk Awareness ◽  
Risk Reduction Behavior ◽  
Reduction Behavior

This study aimed to determine whether risk awareness of coronavirus disease (COVID-19) affects visits to national parks. We analyzed the tourist decision-making process during the current pandemic using the theory of planned behavior as a framework, adding variables relevant to the pandemic, such as risk perception and risk reduction behavior, to the model. Based on a literature review, we developed a research model describing the impact relationship between risk perception, the theory of planned behavior, and risk reduction behavior and tested nine hypotheses. Results of a survey of 555 visitors to two national parks supported eight of the nine hypotheses. Although the results are limited, they reaffirm the usefulness of the theory of planned behavior in explaining tourism behavior. This work is significant in that we would be able to extend the scope of subsequent research beyond a discussion of the direct effects on optimistic perceptions (bias) and risk reduction behavior as well as visit intention, by explaining the probability even in unprecedented crises such as COVID-19. Humans may be negotiating the constraints (COVID-19) or embodied tourism need through the personal bias. Furthermore, we discuss the theoretical implications of the results for tourism behavior research.

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