Residential insurance market responses after earthquake: A survey of Christchurch dwellers

Mumo, Richard; Watt, Richard

doi:10.1016/j.ijdrr.2019.101166

Cited by 11 publications

(3 citation statements)

References 38 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This may be perceived as a structural intervention needed for housing resilience, involving new insurance standards and financial regulations, in conjunction with progressive capital investments, scientific data and analysis, public policies and governance. Larger issues related to existing insurance coverage then become a priority concern for communities with either under or over insurance policies managing community housing recovery [45,49,[113][114][115][116]. The question of long-term recovery is directly linked to individual households having to make significant BBB financial decisions (rebuild, relocate or buy-out) shortly after a disaster.…”

Section: Discussionmentioning

confidence: 99%

Build Back Better and Long-Term Housing Recovery: Assessing Community Housing Resilience and the Role of Insurance Post Disaster

Hofmann

2022

Sustainability

View full text Add to dashboard Cite

The purpose of this research is to better understand community housing resilience and the role of insurance using a Build Back Better Long-term Recovery Housing framework to analyze approaches and effects on long-term housing rebuilding and recovery. A comparative case study approach is taken to assess insurance policies and outcomes following Hurricane Katrina in New Orleans and the Canterbury earthquake sequence in Christchurch, New Zealand, both affluent urban communities with strong insurance markets. Framed within the context of “Build Back Better”, the community housing and insurance resilience assessment is based on five key indicators; governance, community resources, risk reduction, housing rebuilding funding (funding and speed of funding), and time compression (built environment and periods of recovery time). Public and private insurance schemes for both case studies are identified and are considered together with analysis of insurance claims and other sources of financial support. The findings and results show that recovery is the result of highly interdependent Build Back Better processes. The data suggests that insurance and governance systems greatly influences the onset and overall speed of recovery (time compression), thereby performing a major role in long-term recovery. This research provides an original contribution to disaster recovery knowledge by analyzing insurance claims from two well-documented natural disasters. Additionally, the paper proposes for the singular definition of community housing resilience.

show abstract

Section: Discussionmentioning

confidence: 99%

Build Back Better and Long-Term Housing Recovery: Assessing Community Housing Resilience and the Role of Insurance Post Disaster

Hofmann

2022

Sustainability

View full text Add to dashboard Cite

show abstract

“…The first part, which constitutes the main findings of this survey, involves simple descriptive analysis. The purpose of this approach is to present, in a straightforward manner, the changes observed in insurance demand-related variables after the earthquakes (Li & Liu, 2023; Mumo & Watt, 2019). When appropriate, a chi-square test of independence was used to examine differences in participants’ responses.…”

Section: Methodsmentioning

confidence: 99%

Enhancing Disaster Resilience: Insights from the Cianjur Earthquake to Improve Indonesia’s Risk Financing Strategies

Handoyo,

Dalimunthe,

Purwanto

et al. 2024

Sage Open

View full text Add to dashboard Cite

Earthquakes pose a growing threat to Indonesia, and the country’s limited resources for risk mitigation propagate its vulnerability. The heavy reliance on ad-hoc government relief for risk transfer is not sustainable. This study aims to provide scientific evidence for formulating disaster risk financing strategies in Indonesia, focusing on active fault areas with high population density. By analyzing people’s responses to risk financing after the November 21, 2022, earthquake in Cianjur Regency, the study examines emotional reactions, risk perceptions, and willingness to participate in risk insurance. The findings highlight three major issues: low participation in insurance programs due to limited insurance literacy and enrollment, the significant financial burden on the government from material losses, and the critical need for disaster insurance schemes for homes and fixed assets. The study emphasizes the urgency of implementing disaster risk financing in Indonesia, with a focus on the vulnerability of poor and low-income households. It also stresses the importance of enhancing disaster risk governance and promoting public-private partnerships on small-scale insurance schemes.

show abstract

“…In terms of empirical evidence of risk aversion, with a particular focus on the demand for various types of insurance, the works of Banks, Bassoli, and Mammi (2019), Din et al (2017), Fang (2020), Jindal (2015, Laura, Mihai, and Mihaela (2020), Lin et al (2017), Mumo and Watt (2019), and Outreville (2014) offer a thorough review of the current literature. The scope of our work is based on that of Hogarth and Kunreuther (1995), which discusses cost-benefit analysis and what would be the rules for making decisions in terms of buying insurance.…”

Section: Willingness To Buy Insurance and Risk Aversionmentioning

confidence: 99%

Decision Making under Ignorance and Product Disclosure: Implications in Buying Insurance

Mendes‐Da‐Silva

Gattaz

Gibson

2021

RBGN

View full text Add to dashboard Cite

Purpose -The subject of making choices under risk has been studied based on the assumption that decision makers are fully informed. However, in real life situations individuals frequently need to make choices without the benefit of essential information. This study analyzes decision making in the absence of information about the probabilities of losses and potential impacts, which constitutes a context of ignorance, or alternatively making choices under risk or uncertainty.Theoretical framework -This study is supported by theoretical aspects related to decision making under ignorance, specifically within the context of buying insurance.Design/methodology/approach -We used One Way ANOVA and regressions based on the data collected from two experiments regarding the willingness to acquire extended warranties for electronic equipment, which involved the participation of over 130 volunteers.Findings -Our findings suggest that the absence of economic informationdeficient disclosure -makes the cost of insurance relevant to the consumer and is negatively associated with the propensity to acquire it. In addition, the cost of repairs and the probability of equipment breaking increase the propensity to acquire an extended warranty.Practical & social implications of research -By making information relevant to consumption decisions and accessible in a transparent manner, agents can induce a surge in consumption, making the market more efficient and society more resilient in the face of risks.Originality/value -This study may be the first to provide empirical evidence regarding the purchase of insurance within a context of ignorance in emerging markets.

show abstract

Residential insurance market responses after earthquake: A survey of Christchurch dwellers

Cited by 11 publications

References 38 publications

Build Back Better and Long-Term Housing Recovery: Assessing Community Housing Resilience and the Role of Insurance Post Disaster

Build Back Better and Long-Term Housing Recovery: Assessing Community Housing Resilience and the Role of Insurance Post Disaster

Enhancing Disaster Resilience: Insights from the Cianjur Earthquake to Improve Indonesia’s Risk Financing Strategies

Decision Making under Ignorance and Product Disclosure: Implications in Buying Insurance

Contact Info

Product

Resources

About