A risk-sharing mechanism for multi-region catastrophe insurance with government subsidies

Xi-hui, Wang; Zhou, Mengzhe; Shao, Jianfang

doi:10.1016/j.ijdrr.2023.103558

Cited by 5 publications

(2 citation statements)

References 38 publications

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“…It has exposed shortcomings in the prevention and control system for health emergencies. Insurance is a modern risk-management method that effectively disperses the negative consequences of disasters through the establishment of new types of insurance, the use of reinsurance to disperse risks, and the issuance of catastrophe bonds ( 1 , 2 ). This is important to a country's emergency system.…”

Section: Introductionmentioning

confidence: 99%

Can major public health emergencies increase the participation of commercial insurance? Evidence from China

Wang,

Guo,

et al. 2024

Front. Public Health

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BackgroundPublic health emergencies have a lasting impact on a country's economic and social development. However, commercial insurance can disperse these negative consequences and reduce risk losses.MethodBased on the Chinese Household Tracking Survey and Peking University Digital Inclusive Finance Index, this study employed a difference-in-differences model to test the impact of the COVID-19 outbreak on commercial insurance participation and the impact mechanism.ResultsThe analysis showed that the outbreak of COVID-19 improved residents' risk perception, risk preference and digital finance and promoted their participation in commercial insurance, commercial endowment insurance, and commercial medical insurance.ConclusionMajor public health emergencies can increase commercial insurance participation, but the promotional effect of commercial insurance on rural and low-income individuals is relatively limited. To tap into potential customers, financial institutions should focus on vulnerable societal groups. This study supplements the relevant literature on the impact of major public health emergencies on commercial insurance participation.

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Section: Introductionmentioning

confidence: 99%

Can major public health emergencies increase the participation of commercial insurance? Evidence from China

Wang,

Guo,

et al. 2024

Front. Public Health

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“…Another example is the devastating earthquake that struck Sichuan Province in China on May 12, 2008, causing over 88,670 deaths, over 374,000 injuries, and the destruction of an estimated 5.5 million structures 20 . Wang et al 21 observed that in response to the repeated earthquakes, the Chinese government launched the Catastrophe Insurance Pilot Program in Chuxiong in 2014. This program aimed to transfer the individual risk of injury and property loss to the insurance market, thus reducing the burden on the government and cutting down on expenditures 20 .…”

Section: Introductionmentioning

confidence: 99%

Uncovering the factors that affect earthquake insurance uptake using supervised machine learning

Ng’ombe,

Addai,

Mzyece

et al. 2023

Sci Rep

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The escalating threat of natural disasters to public safety worldwide underlines the crucial role of effective environmental risk management tools, such as insurance. This is particularly evident in the case of earthquakes that occurred in Oklahoma between 2011 and 2020, which were linked to wastewater injection, underscoring the need for earthquake insurance. In this regard, from a survey of 812 respondents in Oklahoma, USA, we used supervised machine learning techniques (i.e., logit, ridge, least absolute shrinkage and selection operator (LASSO), decision tree, and random forest classifiers) to identify the factors that influence earthquake insurance uptake and to predict individuals who would acquire earthquake insurance. Our findings reveal that influential factors that affect earthquake insurance uptake include demographic factors such as older age, male gender, race, and ethnicity. These were found to significantly influence the decision to purchase earthquake insurance. Additionally, individuals residing in rental properties were less likely to purchase earthquake insurance, while longer residency in Oklahoma had a positive influence. Past experience of earthquakes was also found to positively influence the decision to purchase earthquake insurance. Both decision trees and random forests demonstrated good predictive capabilities for identifying earthquake insurance uptake. Notably, random forests exhibited higher precision and robustness, emerging as an encouraging choice for earthquake insurance modeling and other classification problems. Empirically, we highlight the importance of insurance as an environmental risk management tool and emphasize the need for awareness and education on earthquake insurance as well as the use of supervised machine learning algorithms for classification problems.

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Tsunami insurance portfolio optimization for coastal residential buildings under non-stationary sea level rise effects based on sample average approximation

Alhamid,

Akiyama,

Koshimura

et al. 2023

Stoch Environ Res Risk Assess

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A risk-sharing mechanism for multi-region catastrophe insurance with government subsidies

Cited by 5 publications

References 38 publications

Can major public health emergencies increase the participation of commercial insurance? Evidence from China

Can major public health emergencies increase the participation of commercial insurance? Evidence from China

Uncovering the factors that affect earthquake insurance uptake using supervised machine learning

Tsunami insurance portfolio optimization for coastal residential buildings under non-stationary sea level rise effects based on sample average approximation

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