IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/118252.html
   My bibliography  Save this paper

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

Author

Listed:
  • Pitterle, Claudia

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.

Suggested Citation

  • Pitterle, Claudia, 2022. "Climate change, natural disasters 2021 and the impact on insurance demand! A look at Germany from the perspective of Behavioral Economics," MPRA Paper 118252, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:118252
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/118252/1/Climate%20change.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    natural hazards; insurance demand; heuristics; subjective risk perception; Behavioral Economics;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:118252. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.