IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i7p4349-d787962.html
   My bibliography  Save this article

Insurance as an Alternative for Sustainable Economic Recovery after Natural Disasters: A Systematic Literature Review

Author

Listed:
  • Kalfin

    (Doctoral Program of Mathematics, Faculty of Mathematics and Natural Sciences, Universitas Padjadjaran, Sumedang 45363, Indonesia)

  • Sukono

    (Department of Mathematics, Faculty of Mathematics and Natural Sciences, Universitas Padjadjaran, Sumedang 45363, Indonesia)

  • Sudradjat Supian

    (Department of Mathematics, Faculty of Mathematics and Natural Sciences, Universitas Padjadjaran, Sumedang 45363, Indonesia)

  • Mustafa Mamat

    (Faculty of Informatics and Computing, Universiti Sultan Zainal Abidin, Kuala Terengganu 21300, Malaysia)

Abstract

The risk of natural disasters has increased over the last few decades, leading to significant economic losses across the globe. In response, research related to the risk of economic loss due to natural disasters has continued to develop. At present, insurance remains the best solution for funding such losses. The purpose of this study is to analyse the development of insurance as an alternative for sustainable economic recovery after natural disasters. The data used are articles obtained from several sources indexed by Scopus and Google Scholar. The search resulted in a final database of 266 articles, culled from a total of 813 articles before the final selection was made. The articles used are publications from 2000–2021 (including 21 database periods), to which we applied a systematic literature review method. Identification and evaluation of the articles was carried out through visualization of their content, development of disaster risk insurance, and availability of disaster risk insurance by country and type. The identification results show that the relationship between the word “insurance”, according to visualization using the VOSviewer software, has a relationship with other clusters including the words “disaster”, “disaster insurance”, “risk”, “natural disaster”, “study”, “recovery”, and “disaster risk financing”. The 266 articles studied show that there was an annual increase in the number of published scientific papers over the period 2000–2021. The types of disaster risk insurance, based on a review of the articles, include agricultural insurance, flood insurance, property insurance, earthquake insurance, crop insurance, and natural disaster insurance. In addition, of the six types of disaster risk insurance, three have been discussed the most in the last five years, namely, agricultural, flood, and property insurance. The increase in the number of scientific publications discussing these three types of disaster risk insurance has been influenced by climate change. Climate change causes a significant increase in the potential for disasters and is accompanied by an increased risk of loss. This review is expected to provide information and motivation for researchers related to the development and importance of disaster risk insurance research. Research in the risk sector for disaster losses due to climate change should be continued in the future in order to help fund economic recovery, especially throughout the insurance sector. With continuous research on disaster risk insurance, it is hoped that the resulting information can be more effective in determining insurance risk and in helping local economies and communities recover after the advent of a disaster. With the availability of funds for post-disaster recovery, the regional economy affected by the disaster can be immediately restored and recovered from adversity.

Suggested Citation

  • Kalfin & Sukono & Sudradjat Supian & Mustafa Mamat, 2022. "Insurance as an Alternative for Sustainable Economic Recovery after Natural Disasters: A Systematic Literature Review," Sustainability, MDPI, vol. 14(7), pages 1-18, April.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:7:p:4349-:d:787962
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/7/4349/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/7/4349/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Miki Seko, 2019. "Housing Markets and Household Behavior in Japan," Advances in Japanese Business and Economics, Springer, number 978-981-13-3369-9, April.
    2. Shujian Ma & Juncheng Jiang, 2018. "Discrete dynamical Pareto optimization model in the risk portfolio for natural disaster insurance in China," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 90(1), pages 445-460, January.
    3. Azzam, Azzeddine & Walters, Cory & Kaus, Taylor, 2021. "Does subsidized crop insurance affect farm industry structure? Lessons from the U.S," Journal of Policy Modeling, Elsevier, vol. 43(6), pages 1167-1180.
    4. Tatyana Deryugina, 2017. "The Fiscal Cost of Hurricanes: Disaster Aid versus Social Insurance," American Economic Journal: Economic Policy, American Economic Association, vol. 9(3), pages 168-198, August.
    5. Guoqiang Shen & Seong Hwang, 2015. "A spatial risk analysis of tornado-induced human injuries and fatalities in the USA," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 77(2), pages 1223-1242, June.
    6. Carolyn Kousky, 2019. "The Role of Natural Disaster Insurance in Recovery and Risk Reduction," Annual Review of Resource Economics, Annual Reviews, vol. 11(1), pages 399-418, October.
    7. Dominik Paprotny & Antonia Sebastian & Oswaldo Morales-Nápoles & Sebastiaan N. Jonkman, 2018. "Trends in flood losses in Europe over the past 150 years," Nature Communications, Nature, vol. 9(1), pages 1-12, December.
    8. Xueling Bao & Fengwan Zhang & Xin Deng & Dingde Xu, 2021. "Can Trust Motivate Farmers to Purchase Natural Disaster Insurance? Evidence from Earthquake-Stricken Areas of Sichuan, China," Agriculture, MDPI, vol. 11(8), pages 1-15, August.
    9. Hui Zhang & Chris Dolan & Si Meng Jing & Justine Uyimleshi & Peter Dodd, 2019. "Bounce Forward: Economic Recovery in Post-Disaster Fukushima," Sustainability, MDPI, vol. 11(23), pages 1-24, November.
    10. Nees Jan Eck & Ludo Waltman, 2017. "Citation-based clustering of publications using CitNetExplorer and VOSviewer," Scientometrics, Springer;Akadémiai Kiadó, vol. 111(2), pages 1053-1070, May.
    11. Dadang Jainal Mutaqin & Koichi Usami, 2019. "Smallholder Farmers’ Willingness to Pay for Agricultural Production Cost Insurance in Rural West Java, Indonesia: A Contingent Valuation Method (CVM) Approach," Risks, MDPI, vol. 7(2), pages 1-18, June.
    12. Tesselaar, Max & Botzen, W.J. Wouter & Robinson, Peter J. & Aerts, Jeroen C.J.H. & Zhou, Fujin, 2022. "Charity hazard and the flood insurance protection gap: An EU scale assessment under climate change," Ecological Economics, Elsevier, vol. 193(C).
    13. M. Yucemen, 2005. "Probabilistic Assessment of Earthquake Insurance Rates for Turkey," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 35(2), pages 291-313, June.
    14. Ruikun Peng & Yinyin Zhao & Ehsan Elahi & Benhong Peng, 2021. "Does disaster shocks affect farmers’ willingness for insurance? Mediating effect of risk perception and survey data from risk-prone areas in East China," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 106(3), pages 2883-2899, April.
    15. Pierre Picard, 2008. "Natural Disaster Insurance and the Equity‐Efficiency Trade‐Off," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 75(1), pages 17-38, March.
    16. Zhou Yanli, 2009. "An Introduction to the Development and Regulation of Agricultural Insurance in China," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 34(1), pages 78-84, January.
    17. Philip Ganderton & David Brookshire & Michael McKee & Steve Stewart & Hale Thurston, 2000. "Buying Insurance for Disaster-Type Risks: Experimental Evidence," Journal of Risk and Uncertainty, Springer, vol. 20(3), pages 271-289, May.
    18. Lingchao Meng & Kuo-Hsun Wen & Richard Brewin & Qiong Wu, 2020. "Knowledge Atlas on the Relationship between Urban Street Space and Residents’ Health—A Bibliometric Analysis Based on VOSviewer and CiteSpace," Sustainability, MDPI, vol. 12(6), pages 1-20, March.
    19. Oecd, 2009. "Climate Change and Africa," OECD Journal: General Papers, OECD Publishing, vol. 2009(1), pages 5-35.
    20. Paul Raschky & Hannelore Weck-Hannemann, 2007. "Charity hazard - A real hazard to natural disaster insurance," Working Papers 2007-04, Faculty of Economics and Statistics, Universität Innsbruck.
    21. Awondo, Sebastain N., 2019. "Efficiency of region-wide catastrophic weather risk pools: Implications for African Risk Capacity insurance program," Journal of Development Economics, Elsevier, vol. 136(C), pages 111-118.
    22. Rafia Afroz & Rulia Akhtar & Puteri Farhana, 2017. "Willingness to Pay for Crop Insurance to Adapt Flood Risk by Malaysian Farmers: An Empirical Investigation of Kedah," International Journal of Economics and Financial Issues, Econjournals, vol. 7(4), pages 1-9.
    23. 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.
    24. Ethan J. Raker, 2020. "Natural Hazards, Disasters, and Demographic Change: The Case of Severe Tornadoes in the United States, 1980–2010," Demography, Springer;Population Association of America (PAA), vol. 57(2), pages 653-674, April.
    25. Yukiko Hirabayashi & Roobavannan Mahendran & Sujan Koirala & Lisako Konoshima & Dai Yamazaki & Satoshi Watanabe & Hyungjun Kim & Shinjiro Kanae, 2013. "Global flood risk under climate change," Nature Climate Change, Nature, vol. 3(9), pages 816-821, September.
    26. E J Lodree Jr & S Taskin, 2008. "An insurance risk management framework for disaster relief and supply chain disruption inventory planning," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(5), pages 674-684, May.
    27. Miki Seko, 2019. "Perceived Preparedness and Attitude of Japanese Households Toward Risk Mitigation Activities Following the Great East Japan Earthquake: Earthquake Insurance Purchase and Seismic Retrofitting," Advances in Japanese Business and Economics, in: Housing Markets and Household Behavior in Japan, chapter 0, pages 231-249, Springer.
    28. Howard Kunreuther, 2006. "Disaster Mitigation and Insurance: Learning from Katrina," The ANNALS of the American Academy of Political and Social Science, , vol. 604(1), pages 208-227, March.
    29. Mario Miranda & Dmitry V. Vedenov, 2001. "Innovations in Agricultural and Natural Disaster Insurance," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 650-655.
    30. Samanthi Durage & S. Wirasinghe & Janaka Ruwanpura, 2013. "Comparison of the Canadian and US tornado detection and warning systems," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 66(1), pages 117-137, March.
    31. Yong Ding & Pei Wang & Xiaoling Liu & Xuliang Zhang & Lei Hong & Zhibin Cao, 2020. "Risk assessment of highway structures in natural disaster for the property insurance," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 104(3), pages 2663-2685, December.
    32. David J. Frame & Suzanne M. Rosier & Ilan Noy & Luke J. Harrington & Trevor Carey-Smith & Sarah N. Sparrow & Dáithí A. Stone & Samuel M. Dean, 2020. "Climate change attribution and the economic costs of extreme weather events: a study on damages from extreme rainfall and drought," Climatic Change, Springer, vol. 162(2), pages 781-797, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Konstantinos Papoulakos & Theano Iliopoulou & Panayiotis Dimitriadis & Dimosthenis Tsaknias & Demetris Koutsoyiannis, 2025. "Spatiotemporal clustering of streamflow extremes and relevance to flood insurance claims: a stochastic investigation for the contiguous USA," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 121(1), pages 447-484, January.
    2. Rini Cahyandari & Kalfin & Sukono & Sri Purwani & Dewi Ratnasari & Titin Herawati & Sutiono Mahdi, 2023. "The Development of Sharia Insurance and Its Future Sustainability in Risk Management: A Systematic Literature Review," Sustainability, MDPI, vol. 15(10), pages 1-23, May.
    3. Riza Andrian Ibrahim & Sukono & Herlina Napitupulu & Rose Irnawaty Ibrahim, 2023. "How to Price Catastrophe Bonds for Sustainable Earthquake Funding? A Systematic Review of the Pricing Framework," Sustainability, MDPI, vol. 15(9), pages 1-19, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Amanda Savitt, 2017. "Insurance as a tool for hazard risk management? An evaluation of the literature," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 86(2), pages 583-599, March.
    2. Yu Yan & Michael Faure, 2021. "Government interventions in microinsurance: evidence from China," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 46(3), pages 440-467, July.
    3. Osberghaus, Daniel & Reif, Christiane, 2021. "How do different compensation schemes and loss experience affect insurance decisions? Experimental evidence from two independent and heterogeneous samples," Ecological Economics, Elsevier, vol. 187(C).
    4. Céline Grislain-Letrémy & Bertrand Villeneuve, 2019. "Natural disasters, land-use, and insurance," The Geneva Papers on Risk and Insurance Theory, Springer;International Association for the Study of Insurance Economics (The Geneva Association), vol. 44(1), pages 54-86, March.
    5. Susana Ferreira, 2024. "Extreme Weather Events and Climate Change: Economic Impacts and Adaptation Policies," Annual Review of Resource Economics, Annual Reviews, vol. 16(1), pages 207-231, October.
    6. Tim Philippi & Jörg Schiller, 2024. "Abandoning disaster relief and stimulating insurance demand through premium subsidies," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 91(2), pages 339-382, June.
    7. Graff Zivin, Joshua & Liao, Yanjun & Panassié, Yann, 2023. "How hurricanes sweep up housing markets: Evidence from Florida," Journal of Environmental Economics and Management, Elsevier, vol. 118(C).
    8. Fluhrer, Svenja, 2023. "Crowding-in or crowding-out: The effect of humanitarian aid on households’ investments in climate adaptation," MPRA Paper 117975, University Library of Munich, Germany.
    9. Mensah, Edouard R. & Filipski, Mateusz J., 2022. "Saving for a rainy day: the impact of natural disasters on savings rates," 2024 Annual Meeting, July 28-30, New Orleans, LA 322266, Agricultural and Applied Economics Association.
    10. Dingde Xu & Enlai Liu & Xuxi Wang & Hong Tang & Shaoquan Liu, 2018. "Rural Households’ Livelihood Capital, Risk Perception, and Willingness to Purchase Earthquake Disaster Insurance: Evidence from Southwestern China," IJERPH, MDPI, vol. 15(7), pages 1-19, June.
    11. Md Shahinoor Rahman & Liping Di, 2020. "A Systematic Review on Case Studies of Remote-Sensing-Based Flood Crop Loss Assessment," Agriculture, MDPI, vol. 10(4), pages 1-30, April.
    12. Fabrizio Terenzio Gizzi & Jonghun Kam & Donatella Porrini, 2020. "Time windows of opportunities to fight earthquake under-insurance: evidence from Google Trends," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 7(1), pages 1-11, December.
    13. repec:ags:aaea22:335942 is not listed on IDEAS
    14. Nicola Garbarino & Sascha Möhrle & Florian Neumeier & Marie-Theres von Schickfus, 2024. "Disaster Aid and Support for Mandatory Insurance: Evidence from a Survey Experiment," ifo Working Paper Series 406, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    15. Lu, Richard & Yang, Min-Hsien & Zeng,Qiao-Ling, . "An Empirical Study on Aquaculture Insurance Purchase in Taiwan from A Behavioral Economics Perspective," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 11(4).
    16. Joakim Weill, 2023. "Flood Risk Mapping and the Distributional Impacts of Climate Information," Working Papers 2023.10, FAERE - French Association of Environmental and Resource Economists.
    17. Nguyen, Ha Trong & Mitrou, Francis, 2025. "Natural disasters and the demand for health insurance," Journal of Environmental Economics and Management, Elsevier, vol. 130(C).
    18. Tianrong Xu & Nikmatul Adha Nordin & Ainoriza Mohd Aini, 2022. "Urban Green Space and Subjective Well-Being of Older People: A Systematic Literature Review," IJERPH, MDPI, vol. 19(21), pages 1-29, October.
    19. Joakim A. Weill, 2023. "Flood Risk Mapping and the Distributional Impacts of Climate Information," Finance and Economics Discussion Series 2023-066, Board of Governors of the Federal Reserve System (U.S.).
    20. Mona Ahmadiani & Susana Ferreira & Craig E. Landry, 2019. "Flood Insurance and Risk Reduction: Market Penetration, Coverage, and Mitigation in Coastal North Carolina," Southern Economic Journal, John Wiley & Sons, vol. 85(4), pages 1058-1082, April.
    21. Paul Hudson & Annegret H. Thieken, 2022. "The presence of moral hazard regarding flood insurance and German private businesses," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 112(2), pages 1295-1319, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:7:p:4349-:d:787962. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.