@article{Akter:5984,
      recid = {5984},
      author = {Akter, Sonia and Brouwer, Roy and Chowdhury, Saria and  Aziz, Salina},
      title = {Determinants of Participation in a Catastrophe Insurance  Programme: Empirical Evidence from a Developing Country},
      address = {2008},
      number = {419-2016-26558},
      series = {Conference Paper},
      pages = {37},
      year = {2008},
      abstract = {The paper presents empirical evidence of the determinants  of catastrophe insurance participation
in one of the  poorest and most disaster prone countries in the world. In  a large-scale household
survey carried out in 2006 we ask  3,000 residents in six different districts in Bangladesh  facing
various environmental risk exposure levels about  their willingness to participate in a catastrophe
insurance  programme. Combining factors put forward in risk theory and  economics, we estimate
a model of insurance participation.  We show that the household decision to participate in  the
insurance programme differs depending on both exogenous  and endogenous risk exposure levels.
As predicted by  micro-economic theory, ability to pay, measured in terms of  household income
and access to credit, significantly  affects insurance participation. Furthermore, among the  sociodemographic
factors investigated in this case study,  respondent education and occupation are
found to  significantly influence household decision making. Our  study suggests that low
participation rates for catastrophe  insurance in a developing country can be explained by  high
rates of illiteracy and limited access to credit.},
      url = {http://ageconsearch.umn.edu/record/5984},
      doi = {https://doi.org/10.22004/ag.econ.5984},
}