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Confronting earthquake risk in Japan—are private households underinsured?

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  • Franz Waldenberger

Abstract

Despite the fact that Japan is an earthquake-prone country and Japanese people are known to be highly risk averse, less than half of Japanese households are insured against earthquake risk. Based on a survey among experts in the field, the article gives an overview of earthquake insurance schemes and evaluates possible reasons for the relatively low level of insurance and ways for improvement. Experts agree that more insurance is desirable, but they share a less clear opinion about the causes and possible remedies. More research is warranted. Copyright Springer-Verlag Berlin Heidelberg 2013

Suggested Citation

  • Franz Waldenberger, 2013. "Confronting earthquake risk in Japan—are private households underinsured?," Asia Europe Journal, Springer, vol. 11(1), pages 79-91, March.
    • Handle: RePEc:kap:asiaeu:v:11:y:2013:i:1:p:79-91
    DOI: 10.1007/s10308-013-0345-7
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    References listed on IDEAS

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    1. Dwight M. Jaffee & Thomas Russell, 1996. "Catastrophe Insurance, Capital Markets and Uninsurable Risks," Center for Financial Institutions Working Papers 96-12, Wharton School Center for Financial Institutions, University of Pennsylvania.
    2. Yasuyuki Sawada & Satoshi Shimizutani, 2008. "How Do People Cope with Natural Disasters? Evidence from the Great Hanshin‐Awaji (Kobe) Earthquake in 1995," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 40(2‐3), pages 463-488, March.
    3. Randall S. Jones, 2007. "Income Inequality, Poverty and Social Spending in Japan," OECD Economics Department Working Papers 556, OECD Publishing.
    4. Howard Kunreuther & Mark Pauly, 2004. "Neglecting Disaster: Why Don't People Insure Against Large Losses?," Journal of Risk and Uncertainty, Springer, vol. 28(1), pages 5-21, January.
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