Climate change, natural disasters 2021 and the impact on insurance demand! A look at Germany from the perspective of Behavioral Economics.

Pitterle, Claudia (2022): Climate change, natural disasters 2021 and the impact on insurance demand! A look at Germany from the perspective of Behavioral Economics. Published in: International Business Information Management Association No. ISBN: 978-0-9998551-8-8, ISSN: 2767-9640, 30-31 (2022): pp. 354-358.

Abstract

Natural disasters worldwide are becoming more extreme and more frequent. In Germany, the low-pressure area "Bernd" in the summer of 2021 caused costs of 40 billion dollars. An insurance against natural hazards protects against these risks and reimburses the costs incurred. From the perspective of the availability heuristic, insurance inquiries increase due to media presence after such severe catastrophes and then drop again. Despite increasing and severe natural catastrophes worldwide as well as in Germany, the insurance density of natural catastrophe insurances is only about 46%. The increasing danger is no longer perceived as the media presence decreases. And thus, the presentness of the danger should be made clearer.

• Item Type: MPRA Paper
• Language: English
• Keywords: natural hazards, insurance demand, heuristics, subjective risk perception, Behavioral Economics
• Subjects: D - Microeconomics > D1 - Household Behavior and Family Economics > D14 - Household Saving; Personal Finance; D - Microeconomics > D1 - Household Behavior and Family Economics > D18 - Consumer Protection; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D82 - Asymmetric and Private Information ; Mechanism Design; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q54 - Climate ; Natural Disasters and Their Management ; Global Warming

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