Natural Disasters and Individual Behaviour in Developing Countries

Risk, Trust and the Demand for Microinsurance

Business & Finance, Human Resources & Personnel Management, Organizational Behavior, Economics
Cover of the book Natural Disasters and Individual Behaviour in Developing Countries by Oliver Fiala, Springer International Publishing
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Author: Oliver Fiala ISBN: 9783319539041
Publisher: Springer International Publishing Publication: April 4, 2017
Imprint: Springer Language: English
Author: Oliver Fiala
ISBN: 9783319539041
Publisher: Springer International Publishing
Publication: April 4, 2017
Imprint: Springer
Language: English

This study investigates the complex link between natural disasters, individual behaviour – in the form of an individual’s risk-taking propensity and level of trust – and the demand for microinsurance. Developing countries are particularly vulnerable to the impacts of natural hazards and climate change as they affect their development processes and set back poverty reduction efforts. Using a unique data set for rural Cambodia based on a survey, experimental games and a discrete choice experiment, the study highlights the importance of perceptions, expectations and psychological factors in decision-making processes with substantial consequences for long-term economic perspectives and poverty alleviation. 

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This study investigates the complex link between natural disasters, individual behaviour – in the form of an individual’s risk-taking propensity and level of trust – and the demand for microinsurance. Developing countries are particularly vulnerable to the impacts of natural hazards and climate change as they affect their development processes and set back poverty reduction efforts. Using a unique data set for rural Cambodia based on a survey, experimental games and a discrete choice experiment, the study highlights the importance of perceptions, expectations and psychological factors in decision-making processes with substantial consequences for long-term economic perspectives and poverty alleviation. 

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