Behavioral insurance

Improving flood preparedness using insights from economic experiments

Flooding is one of the most dangerous natural hazards worldwide, causing widespread economic damage in coastal areas, thousands of deaths and injuries, and displacing millions of people every year. Individual homeowners can take a number of measures …

Behavioral motivations for self-insurance under different disaster risk insurance schemes

This paper presents a lab-in-the-field experiment with 2111 Dutch homeowners in floodplain areas to examine the impacts of financial incentives and behavioral motivations for self-insurance under different flood insurance schemes. We experimentally …

Risk reduction in compulsory disaster insurance: Experimental evidence on moral hazard and financial incentives

In a world in which economic losses due to natural disasters are expected to increase, it is important to study risk reduction strategies, including individual investments of homeowners in damage reducing (mitigation) measures. We use a lab …