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Natural Disasters and Individual Behaviour in Developing Countries pp 147–163Cite as

Going Forward: Building Resilience with Microinsurance

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Part of the book series: Contributions to Economics ((CE))

Abstract

This chapter will highlight and discuss important results and conclusions from the theoretical and empirical analysis. These include the role of individual behaviour in decision-making processes, substitutes to microinsurance and the possible benefits of insurance for prevention and productivity, as well as the future of microinsurance and a commentary on disaster risk management.

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Notes

  1. 1.

    Almost three quarters (74.2%) of respondents in rural Cambodia stated that they would increase their production or try new crops with higher returns if they would have insurance against flood damage. However, during the survey the questions were asked with no further information provided regarding the insurance design and cannot be validated in a real-world situation.

  2. 2.

    The response-orientated view of disaster risk management is reflected in international disaster aid allocation (Mochizuki et al. 2015). From 1990 to 2010, Cambodia received in total USD785.4 million, whereof 54.9% was used for emergency response and 34.8% for reconstruction and rehabilitation; only 10.2% of international disaster aid was used for disaster preparedness and prevention (AidData 2016).

  3. 3.

    In this context, Mochizuki et al. (2015) discuss an iterative risk management approach which promotes risk-sensitive investment decisions, development strategies and an adjustment of these policies in the light of new data and information, despite remaining uncertainty about future disaster occurrences and impacts. Efforts must be made to remove cognitive, economic and institutional barriers in Cambodia (Mochizuki et al. 2015).

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  1. Faculty of Business and Economics, TU Dresden, Dresden, Germany

    Oliver Fiala

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Fiala, O. (2017). Going Forward: Building Resilience with Microinsurance. In: Natural Disasters and Individual Behaviour in Developing Countries. Contributions to Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-53904-1_5

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