Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/144156
Authors: 
Achtnicht, Martin
Osberghaus, Daniel
Year of Publication: 
2016
Series/Report no.: 
ZEW Discussion Papers 16-051
Abstract: 
Flood insurance helps to cope with the risk of flooding, but take-up rates are relatively low. Insurance density could rise if index-based insurance (IBI) were provided as an alternative to traditional damage-based insurance (DBI). We analyze whether there is potential for private demand for IBI in Germany. We use data from a discrete choice experiment combined with damage data for a major flood in 2013. We find IBI to attract similar customers as DBI, while DBI is preferred on average. Our results suggest that not many new customers would enter the market, once IBI were available.
Subjects: 
Climate Change
Discrete Choice Experiment
Floods
Insurance
Index-based
JEL: 
Q54
G22
D14
Document Type: 
Working Paper

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