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An Analysis Of The Factors Influencing The Demand For Catastrophe Insurance

Author

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  • Cristina CIUMAS

    (Babes-Bolyai University, Faculty of Economics and Business Administration, cristina.ciumas@econ.ubbcluj.ro, Cluj Napoca, Romania,)

  • Ramona Alexandrina COCA

    (Babes-Bolyai University, Faculty of Economics and Business Administration, ramona.coca@econ.ubbcluj.ro, Cluj Napoca, Romania,)

Abstract

This paper approaches the issue of insurance demand for catastrophic risks. Given the impact of these extreme events, the upward trend both in terms of frequency and severity a low level of the degree of insurance coverage can be observed. This is not a characteristic for Romania but rather a global problem. Our goal is to identify the main factors that influence a person�s decision to switch from uninsured to insured based on the analysis of the models already developed. Then we will focus on the Romania�s situation when it comes to regulations of covering the three catastrophic risks: earthquake, flood and landslides. Based on data regarding compulsory household insurance, through a regression analysis we�ll identify the factors that are taken into account by the clients when they decide to transfer the risk by buying an insurance policy. Furthermore we�ll present some elements that can lead to a higher insurance coverage. An important aspect is a different premium for the compulsory insurance by considering the exposure to risk.

Suggested Citation

  • Cristina CIUMAS & Ramona Alexandrina COCA, 2015. "An Analysis Of The Factors Influencing The Demand For Catastrophe Insurance," Journal of Public Administration, Finance and Law, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 0(Special i), pages 69-78, September.
    • Handle: RePEc:aic:jopafl:y:2015:v:s2:p:69-78
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    References listed on IDEAS

    as
    1. Browne, Mark J & Hoyt, Robert E, 2000. "The Demand for Flood Insurance: Empirical Evidence," Journal of Risk and Uncertainty, Springer, vol. 20(3), pages 291-306, May.
    2. Manoj Athavale & Stephen M. Avila, 2011. "An Analysis of the Demand for Earthquake Insurance," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 14(2), pages 233-246, September.
    3. Erwann O. Michel‐Kerjan & Carolyn Kousky, 2010. "Come Rain or Shine: Evidence on Flood Insurance Purchases in Florida," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 77(2), pages 369-397, June.
    4. Mihail Petkovski & Kjosevski Jordan, 2014. "An Analysis Of Non-Life Insurance Determinants For Selected Countries In Central And South Eastern Europe: A Co-Integration Approach," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 160-178, October.
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    Cited by:

    1. Dan-Constantin Dănulețiu & Adina-Elena Dănulețiu, 2016. "Natural Disasters Effects’ Financing Through Insurance in Romania (2010-2015)," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 16(1), pages 83-94.
    2. Dănuleţiu Dan-Constantin & Dănuleţiu Adina-Elena, 2018. "Mandatory Home Insurance In The Romanian “Centru†Region of Development," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 593-598, December.

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