Exploring the feasibility of private micro flood insurance provision in Bangladesh
Open Access
- 15 November 2010
- Vol. 35 (2), 287-307
- https://doi.org/10.1111/j.1467-7717.2010.01218.x
Abstract
This article was published in Disasters [ © 2011 The Author(s) ] and the definite version is available at: https://doi.org/10.1111/j.1467-7717.2010.01218.xThis paper aims to contribute to the debate on the feasibility of the provision of micro flood insurance as an effective tool for spreading disaster risks in developing countries and examines the role of the institutional-organisational framework in assisting the design and implementation of such a micro flood insurance market. In Bangladesh, a private insurance market for property damage and livelihood risk due to natural disasters does not exist. Private insurance companies are reluctant to embark on an evidently unprofitable venture. Testing two different institutional-organisational models, this research reveals that the administration costs of micro-insurance play an important part in determining the long-term viability of micro flood insurance schemes. A government-facilitated process to overcome the differences observed in this study between the nonprofit micro-credit providers and profit-oriented private insurance companies is needed, building on the particular competence each party brings to the development of a viable micro flood insurance market through a public-private partnership.PublisheThis publication has 15 references indexed in Scilit:
- Economic valuation of flood risk exposure and reduction in a severely flood prone developing countryEnvironment and Development Economics, 2009
- Insurance Against Climate Change and Flooding in the Netherlands: Present, Future, and Comparison with Other CountriesRisk Analysis, 2008
- Patterns of Rainfall Insurance Participation in Rural IndiaThe World Bank Economic Review, 2008
- Justice in Ideal Theory: A RefutationPolitical Studies, 2007
- Socioeconomic Vulnerability and Adaptation to Environmental Risk: A Case Study of Climate Change and Flooding in BangladeshRisk Analysis, 2007
- Review of The New Financial Order by ShillerJournal of Economic Literature, 2004
- Crop Insurance under Catastrophic RiskAmerican Journal of Agricultural Economics, 2000
- Efficiency vs Bias of Willingness-to-Pay Estimates: Bivariate and Interval-Data ModelsJournal of Environmental Economics and Management, 1995
- The appropriate role of agricultural insurance in developing countriesJournal of International Development, 1992
- Welfare Evaluations in Contingent Valuation Experiments with Discrete ResponsesAmerican Journal of Agricultural Economics, 1984