Supply and demand analysis for flood insurance by using logistic regression model: case study at Citarum watershed in South Bandung, West Java, Indonesia

• Published in: IOP conference series. Materials Science and Engineering 2017-01, Vol.166 (1), p.12002
• Main Authors: Sidi, P., Mamat, M., Sukono, Supian, S.
• Format: Article
• Language: English
• Subjects: Demand analysis; Flood damage; Flooding; Floods; Houses; Impact damage; Insurance; Property damage; Regression models; Repair; Residential buildings; River basins; Supply & demand
• ISSN: 1757-8981; 1757-899X
• DOI: 10.1088/1757-899X/166/1/012002

Floods have always occurred in the Citarum river basin. The adverse effects caused by floods can cover all their property, including the destruction of houses. The impact due to damage to residential buildings is usually not small. Indeed, each of flooding, the government and several social organizations providing funds to repair the building. But the donations are given very limited, so it cannot cover the entire cost of repair was necessary. The presence of insurance products for property damage caused by the floods is considered very important. However, if its presence is also considered necessary by the public or not? In this paper, the factors that affect the supply and demand of insurance product for damaged building due to floods are analyzed. The method used in this analysis is the ordinal logistic regression. Based on the analysis that the factors that affect the supply and demand of insurance product for damaged building due to floods, it is included: age, economic circumstances, family situations, insurance motivations, and lifestyle. Simultaneously that the factors affecting supply and demand of insurance product for damaged building due to floods mounted to 65.7%.