AN ANALYSIS OF THE FACTORS INFLUENCING THE DEMAND FOR CATASTROPHE INSURANCE

Cristina Ciumas () and Ramona Alexandrina Coca ()
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Cristina Ciumas: Babes-Bolyai University, Faculty of Economics and Business Administration, cristina.ciumas@econ.ubbcluj.ro, Cluj Napoca, Romania,
Ramona Alexandrina Coca: Babes-Bolyai University, Faculty of Economics and Business Administration, ramona.coca@econ.ubbcluj.ro, Cluj Napoca, Romania,

Journal of Public Administration, Finance and Law, 2015, vol. s2, issue Special issue 2, 69-78

Abstract: This paper approaches the issue of insurance demand for catastrophic risks. Given the impact of these extreme events, the upward trend both in terms of frequency and severity a low level of the degree of insurance coverage can be observed. This is not a characteristic for Romania but rather a global problem. Our goal is to identify the main factors that influence a person�s decision to switch from uninsured to insured based on the analysis of the models already developed. Then we will focus on the Romania�s situation when it comes to regulations of covering the three catastrophic risks: earthquake, flood and landslides. Based on data regarding compulsory household insurance, through a regression analysis we�ll identify the factors that are taken into account by the clients when they decide to transfer the risk by buying an insurance policy. Furthermore we�ll present some elements that can lead to a higher insurance coverage. An important aspect is a different premium for the compulsory insurance by considering the exposure to risk.

Keywords: Catastrophe insurance; PAID; insurance coverage; CRESTA zone; relativity factors (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (2)

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