Investigating Factors Driving Urban Residents | Decisions to Buy Flood Insurance

To buy or not to buy insurance against floods?: An analysis of the decision drivers in urban populations

Objective

• Urban areas face increasing flood risks due to climate change. Insurance can help vulnerable populations in this regard. However, access barriers persist, requiring further research. This study will attempt to understand the barriers and catalysts behind adopting insurance policies against floods by urban populations. The study will delve into the factors that drive residents of flood-prone areas to invest in flood insurance. The study will be conducted in the metropolitan city of Chennai.

Description

• Initiate research by engaging with insurance industry stakeholders., Analyse academic literature and industry reports for insights., Develop a research framework based on stakeholder inputs and report findings., Design a questionnaire survey for approximately 1000 respondents and employ statistical models (e.g. regression) to identify factors affecting insurance choices.

Impact

• The Paris Agreement's goal to limit global warming is urgent, especially in climate-vulnerable countries like India. Understanding factors influencing flood insurance adoption is vital for designing effective policies at regional and national levels. This study's focus on urban areas may aid in formulating policies for vulnerable communities. It can inform climate change action plans, raise awareness, and reduce risks from climate change and extreme weather events.