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Possibilities of forest property insurance against the risk of fire in Slovakia

Author

Listed:
  • Michaela Korená Hillayová

    (Department of Forest Resource Planning and Informatics, Faculty of Forestry (FF), Technical University in Zvolen, Zvolen, Slovakia)

  • Klára Báliková

    (Department of Forest Economics and Management, Faculty of Forestry (FF), Technical University in Zvolen, Zvolen, Slovakia)

  • Blanka Giertliová

    (Department of Forest Economics and Management, Faculty of Forestry (FF), Technical University in Zvolen, Zvolen, Slovakia)

  • Josef Drábek

    (Department of Economics, Management and Business (FWST), Faculty of Wood Sciences and Technology, Technical University in Zvolen, Zvolen, Slovakia)

  • Ján Holécy

    (Department of Forest Economics and Management, Faculty of Forestry (FF), Technical University in Zvolen, Zvolen, Slovakia)

Abstract

Fire is considered one of the major natural hazards that damages European forests and causes losses for forest owner. The forest fires endanger the financial stability of forest enterprises, which may cause their economic decline. One possibility how to cover these losses is to insure forest land against this kind of specific risk of forest land management. The aim of the present paper is to analyse possibilities of forest fire insurance for forest owners and enterprises in the Slovak private insurance market. The market analysis was based on document analysis of general terms and insurance conditions of chosen private insurance companies and interviews with insurance agents. The results show that forest owners and enterprises have only few options for forest property insurance concerning the specific risk of forest fires. Only one commercial insurance company provides such forest fire insurance product for forest owners. This insurance covers material damage to forest land and timber damage.

Suggested Citation

  • Michaela Korená Hillayová & Klára Báliková & Blanka Giertliová & Josef Drábek & Ján Holécy, 2021. "Possibilities of forest property insurance against the risk of fire in Slovakia," Journal of Forest Science, Czech Academy of Agricultural Sciences, vol. 67(5), pages 204-211.
    • Handle: RePEc:caa:jnljfs:v:67:y:2021:i:5:id:199-2020-jfs
    DOI: 10.17221/199/2020-JFS
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    References listed on IDEAS

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    1. Barreal, Jesús & Loureiro, Maria L. & Picos, Juan, 2014. "On insurance as a tool for securing forest restoration after wildfires," Forest Policy and Economics, Elsevier, vol. 42(C), pages 15-23.
    2. Brunette, M. & Holecy, J. & Sedliak, M. & Tucek, J. & Hanewinkel, M., 2015. "An actuarial model of forest insurance against multiple natural hazards in fir (Abies Alba Mill.) stands in Slovakia," Forest Policy and Economics, Elsevier, vol. 55(C), pages 46-57.
    3. Eric Nazindigouba KERE & Jérôme FONCEL & Marielle BRUNETTE, 2014. "Attitude towards Risk and Production Decision: An Empirical analysis on French private forest owners," Working Papers 201410, CERDI.
    4. Evan Mills, 2007. "Synergisms between climate change mitigation and adaptation: an insurance perspective," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 12(5), pages 809-842, June.
    5. Holecy, Jan & Hanewinkel, Marc, 2006. "A forest management risk insurance model and its application to coniferous stands in southwest Germany," Forest Policy and Economics, Elsevier, vol. 8(2), pages 161-174, March.
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