How do different compensation schemes and loss experience affect insurance decisions? Experimental evidence from two independent and heterogeneous samples

نویسندگان

چکیده

Natural hazard insurance is advocated as an important means of risk management, however, private demand often remains below critical levels. Prior loss experience and the design governmental relief schemes are two factors potentially influencing decisions. We address these elements in monetary incentivized experiments which include representations natural Europe. The experiment reflects possible designs schemes: partial but guaranteed full non-guaranteed relief. kept constant over ten consecutive rounds to analyze effect experience. administered twice: a laboratory with student subject pool Mannheim, Germany, online citizens flood-prone areas city Dornbirn, Austria. In both samples, scheme has no on find that prior adversely affects decisions; uninsured subjects tend remain un-insured after experiencing loss, previously insured switch non-insurance loss. These results have implications for flood communication.

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ژورنال

عنوان ژورنال: Ecological Economics

سال: 2021

ISSN: ['0921-8009', '1873-6106']

DOI: https://doi.org/10.1016/j.ecolecon.2021.107087