Financing losses from natural and man-made disasters by use of crowdfunding
The level of insured losses from natural and man-made disasters occurred in the world from 2012 to 2016 did not exceed 30-45%. Therefore, it is necessary to study another perspective source of financing losses refunding from natural and man-made disasters. The objective of this research is to consid...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2017-07-01
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| Series: | Investment Management & Financial Innovations |
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| Online Access: | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/8941/imfi_2017_02cont_Sholoiko.pdf |
| Summary: | The level of insured losses from natural and man-made disasters occurred in the world from 2012 to 2016 did not exceed 30-45%. Therefore, it is necessary to study another perspective source of financing losses refunding from natural and man-made disasters. The objective of this research is to consider financing losses from natural and man-made disasters by use of crowdfunding, especially in emerging countries. It was defined that the most appropriate model of crowdfunding for financing losses from natural and man-made disasters is donation model with reward-based and donation-based business models. Stimulus for individuals to take part in crowdfunding for financing losses from natural and man-made disasters can be different depending on their location and business model. Sets of assessments based on four categories of questions and method of results visualization were used to examine a country’s readiness for crowdfunding on the example of Ukraine. Complete level of Ukraine’s readiness for crowdfunding was defined. It shows that reward-based crowdfunding is the first stage towards crowdfunding implementation and development. Further research should be done to investigate the mechanism of using a tax discount in case of implementation of the reward-based crowdfunding for financing losses from natural and man-made disasters. |
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| ISSN: | 1810-4967 1812-9358 |