Factors affecting flood insurance purchase in residential properties in Johor, Malaysia
High-impact floods have become a virtually annual experience in Malaysia, yet flood insurance has remained a grossly neglected part of comprehensive integrated flood risk management. Using discriminant analysis, this study seeks to identify the demand-side variables that best predict flood insurance...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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Copernicus Publications
2014
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| Online Access: | http://eprints.utm.my/52852/1/GodwinUcheAliagha2014_Factorsaffectingfloodinsurance.pdf |
| _version_ | 1796859799283957760 |
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| author | Aliagha, Uche Godwin Jin, T. E. Choong, Weng Wai Jaafar, M. Nadzri Mohd. Ali, Hishamuddin |
| author_facet | Aliagha, Uche Godwin Jin, T. E. Choong, Weng Wai Jaafar, M. Nadzri Mohd. Ali, Hishamuddin |
| author_sort | Aliagha, Uche Godwin |
| collection | ePrints |
| description | High-impact floods have become a virtually annual experience in Malaysia, yet flood insurance has remained a grossly neglected part of comprehensive integrated flood risk management. Using discriminant analysis, this study seeks to identify the demand-side variables that best predict flood insurance purchase and risk aversion between two groups of residential homeowners in three districts of Johor State, Malaysia: those who purchased flood insurance and those who did not. Our results revealed an overall 34% purchase rate, with Kota Tinggi district having the highest (44%) and thus the highest degree of flood risk aversion. The Wilks' lambda <i>F</i> test for equality of group means, standardised discriminant function coefficients, structure correlation, and canonical correlation has clearly shown that there are strong significant attribute differences between the two groups of homeowners, based on the measures of objective flood risk exposure, subjective risk perception, and socio-economic cum demographic variables. However, the measures of subjective risk perception were found to be more predictive of flood insurance purchase and flood risk aversion. |
| first_indexed | 2024-03-05T19:32:34Z |
| format | Article |
| id | utm.eprints-52852 |
| institution | Universiti Teknologi Malaysia - ePrints |
| language | English |
| last_indexed | 2024-03-05T19:32:34Z |
| publishDate | 2014 |
| publisher | Copernicus Publications |
| record_format | dspace |
| spelling | utm.eprints-528522018-07-19T07:18:32Z http://eprints.utm.my/52852/ Factors affecting flood insurance purchase in residential properties in Johor, Malaysia Aliagha, Uche Godwin Jin, T. E. Choong, Weng Wai Jaafar, M. Nadzri Mohd. Ali, Hishamuddin HD Industries. Land use. Labor High-impact floods have become a virtually annual experience in Malaysia, yet flood insurance has remained a grossly neglected part of comprehensive integrated flood risk management. Using discriminant analysis, this study seeks to identify the demand-side variables that best predict flood insurance purchase and risk aversion between two groups of residential homeowners in three districts of Johor State, Malaysia: those who purchased flood insurance and those who did not. Our results revealed an overall 34% purchase rate, with Kota Tinggi district having the highest (44%) and thus the highest degree of flood risk aversion. The Wilks' lambda <i>F</i> test for equality of group means, standardised discriminant function coefficients, structure correlation, and canonical correlation has clearly shown that there are strong significant attribute differences between the two groups of homeowners, based on the measures of objective flood risk exposure, subjective risk perception, and socio-economic cum demographic variables. However, the measures of subjective risk perception were found to be more predictive of flood insurance purchase and flood risk aversion. Copernicus Publications 2014 Article PeerReviewed application/pdf en http://eprints.utm.my/52852/1/GodwinUcheAliagha2014_Factorsaffectingfloodinsurance.pdf Aliagha, Uche Godwin and Jin, T. E. and Choong, Weng Wai and Jaafar, M. Nadzri and Mohd. Ali, Hishamuddin (2014) Factors affecting flood insurance purchase in residential properties in Johor, Malaysia. Natural Hazards and Earth System Sciences, 14 (12). pp. 3297-3310. ISSN 1561-8633 https://dx.doi.org/10.5194/nhess-14-3297-2014 DOI: 10.5194/nhess-14-3297-2014 |
| spellingShingle | HD Industries. Land use. Labor Aliagha, Uche Godwin Jin, T. E. Choong, Weng Wai Jaafar, M. Nadzri Mohd. Ali, Hishamuddin Factors affecting flood insurance purchase in residential properties in Johor, Malaysia |
| title | Factors affecting flood insurance purchase in residential properties in Johor, Malaysia |
| title_full | Factors affecting flood insurance purchase in residential properties in Johor, Malaysia |
| title_fullStr | Factors affecting flood insurance purchase in residential properties in Johor, Malaysia |
| title_full_unstemmed | Factors affecting flood insurance purchase in residential properties in Johor, Malaysia |
| title_short | Factors affecting flood insurance purchase in residential properties in Johor, Malaysia |
| title_sort | factors affecting flood insurance purchase in residential properties in johor malaysia |
| topic | HD Industries. Land use. Labor |
| url | http://eprints.utm.my/52852/1/GodwinUcheAliagha2014_Factorsaffectingfloodinsurance.pdf |
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