Microinsurance and natural disasters: Challenges and options

Clarke, Daniel; Grenham, Dermot

doi:10.1016/j.envsci.2012.06.005

Cited by 48 publications

(26 citation statements)

References 14 publications

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“…Despite the potential to reduce risks, farmers' demand for insurance has however been considerably lower than expected (Akter et al 2009;Giné et al 2008). Previous studies identified a range of issues influencing farmers' low insurance uptake, including financial constraints, unfamiliarity with insurance, low financial literacy, and lack of trust in insurance providers, among others (Akter 2012;Binswanger-Mkhize 2012;Clarke and Grenham 2013;Akter et al 2016). We further hypothesize that climate change skepticism may be an important impediment to insurance adoption in low-income Editor: Wolfgang Cramer Electronic supplementary material The online version of this article (doi:10.1007/s10113-017-1174-9) contains supplementary material, which is available to authorized users.…”

Section: Introductionmentioning

confidence: 99%

“…Standard insurance, however, has several limitations. Farmers have been observed purposely and poorly managing their crops to boost the potential of a successful claim, indicating risk of moral hazard (Clarke and Grenham 2013). Standard insurance is also administratively costly; most successful schemes therefore require underwriting by governments, companies, or development organizations.…”

Section: Introductionmentioning

confidence: 99%

“…Considering basis risk, indices may be poorly correlated to individual farmers' experiences. For example, an index may indicate that the threshold for crop damage was not surpassed at a regional level, while specific farmers may nonetheless experience crop losses (Clarke and Grenham 2013). WII is also conceptually complex, disincentivizing smallholders' willingness to invest (Giné et al 2008;Akter et al 2016).…”

Section: Introductionmentioning

confidence: 99%

“…Weather parameter thresholds must be strongly positively correlated with crop losses and reliably measured. Examples include the number of days of successive drought or excessive rain, waterlogging, or extreme temperatures (Clarke and Grenham 2013).…”

Section: Introductionmentioning

confidence: 99%

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Climate change skepticism and index versus standard crop insurance demand in coastal Bangladesh

2017

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This paper investigates if climate change skepticism, farmers' fatalistic beliefs, and insurance plan design influence interest in crop weather insurance. While studies of the influence of fatalism on disaster preparedness are common, the ways in which fatalism influences climate change skepticism, and in turn affects farmers' interest in crop insurance, have not been previously investigated. An additional objective was to understand farmers' preferences for index versus standard insurance options, the former entailing damage compensation based on post-hazard assessment, the latter tying damage compensation to a set of weather parameter thresholds. A discrete choice experiment was conducted with maize farmers on a climate-risk prone island in coastal Bangladesh. Most farmers were insurance averse. Those who chose insurance were however significantly more likely to select standard as opposed to index-based insurance. Insurance demand was significantly and positively correlated with farmers' concern about the adverse livelihood impacts of climate change. Farmers who exhibited fatalistic views regarding the consequences of climate change were significantly less likely to opt for insurance of either kind. These findings imply that the prospect for farmers' investment in insurance is conditioned by their understanding of climate change risks and the utility of adaptation, in addition to insurance scheme design.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Climate change skepticism and index versus standard crop insurance demand in coastal Bangladesh

2017

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“…Furthermore, government-aided information campaigns of risk communication should also include a notice to the public about the availability of the insurance policies to protect their own assets, putting into evidence the advantages and limits of such economic tool and its long-established use in some European countries. The need of such a publically-funded promotion of hazard insurance purchase is necessary doubly so as companies fail to do that due to concerns about free riding from competitors [68].…”

Section: Discussion Of the Datamentioning

confidence: 99%

The Insurance Market of Natural Hazards for Residential Properties in Italy

Gizzi¹,

Potenza²,

Zotta³

2016

OJER

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Insurance is an effective complementary countermeasure for unexpected losses brought about by natural hazards. Coverage can be a useful tool considering in particular that public funds available to compensate for damages are limited and the consequences of catastrophes are becoming more severe over the time. Bearing this in mind, the authors performed a study aiming to clear up the main aspects and limits of the insurance market of natural hazards for residential properties in Italy. The opening sections of the paper give an overview of both the historical extreme events in Europe and Italy, and the reasons for the low insurance penetration rate in Italy. After that, the paper goes to the core of the research casting light upon the insurance market in Italy and examining the features and possible drawbacks of the available insurance covers. In this paper, the geophysical (seismic and volcanic) and hydrological (landslide and flood) hazards are analysed, and the residential stock is taken as a reference. After deepening in the local insurance market, the research focuses on the possible suggestions to stakeholders of how to increase the insurance penetration rate by taking advantage of the international experiences.

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Erfahrungen mit Naturkatastrophen: Wie dies Risikoaversion und Vertrauen beeinflußt

Fiala

2022

Naturkatastrophen Und Individuelles Verhalten in Entwicklungsländern

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Microinsurance and natural disasters: Challenges and options

Cited by 48 publications

References 14 publications

Climate change skepticism and index versus standard crop insurance demand in coastal Bangladesh

Climate change skepticism and index versus standard crop insurance demand in coastal Bangladesh

The Insurance Market of Natural Hazards for Residential Properties in Italy

Erfahrungen mit Naturkatastrophen: Wie dies Risikoaversion und Vertrauen beeinflußt

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