Formulating Natural Disaster Insurance Scheme for Micro, Small, and Medium Enterprises (MSMEs) in Indonesia
DOI:
https://doi.org/10.61459/ijfs.v1i1.7Keywords:
Econometrics, Insurance Scheme, Insurance, Natural DisasterAbstract
The existence of disaster insurance in Indonesia is particularly important for disaster-prone areas. In recent years, only 2.96% of 64 million MSMEs have disaster insurance. This is because the existing disaster insurance scheme has not fully met the expectations of MSMEs regarding its premium value, its claims mechanism and MSMEs financial capability. This research seeks to explore the factors that influence MSMEs to own disaster insurance, by using quantitative analysis of Panel Fixed Effects Model as the first model and Probit Models as the second and third models as well as qualitative analysis. The result will be utilized to formulate the appropriate disaster insurance product which optimize insurance features based on MSMEs’ demand, encourage regulatory support and improve government funding capacity. Indonesia is currently facing approximately IDR19.75 trillion (USD1.4 billion) financing gap to cover the loss caused by disasters hence, there is also a need to create a high- level financing scheme to cover the gap.
Downloads
References
American Institutes for Research. (2005). A Chronology of Major Events Affecting the National Flood Insurance Program (pp. 1-89). Washington DC: American Institutes for Research.
Arham, A., and Firmansyah, A. (2019). Catastrophe Bond Sebagai Instrumen Pembiayaan Pemerintah Dalam Penanggulangan Bencana Alam Di Indonesia. Indonesian Treasury Review Jurnal Perbendaharaan Keuangan Negara Dan Kebijakan Publik, 4(4), 339-349. doi: 10.33105/itrev.v4i4.145
Asian Development Bank. (2018). Philippine City Disaster Insurance Pool. Metro Manila: Asian Development Bank, pp.1-64.
Badan Nasional Penanggulangan Bencana (BNPB). (2016). Risiko Bencana Indonesia (pp. 1- 218). Indonesia: Badan Nasional Penanggulangan Bencana (BNPB). Retrieved from http://inarisk.bnpb.go.id/pdf/Buku%20RBI_Final_low.pdf
Badan Pengelola Pusat Data Asuransi Nasional (BPPDAN). (2019). Statistik Asuransi Kebakaran Indonesia (pp. 1-3010). Indonesia: Badan Pengelola Pusat Data Asuransi Nasional (BPPDAN).
Born, P., and Viscusi, W. (2006). The catastrophic effects of natural disasters on insurance markets. Journal of Risk and Uncertainty, 33(1-2), 55-72. doi: 10.1007/s11166-006-0171- z
Dewi, M., and Sulistyani, D. (2015). Perbandingan Premi Asuransi Kesehatan Peserta Bpjs Badan Usaha Dengan Asuransi Kesehatan Swasta. JURNAL AKUNTANSI DAN
PAJAK, 16(01), 33-47. doi: 10.29040/jap.v16i01.20
General Insurance Rating Organization of Japan (GIROJ). (2014). Earthquake Insurance in Japan (3rd ed., pp. 1- 141). Tokyo: General Insurance Rating Organization of Japan (GIROJ).
Global Facility for Disaster Reduction and Recovery (GFDRR). (2012). Knowledge Note 6-2 Cluster 6: The Economics of Disaster Risk, Risk Management, And Risk Financing. Earthquake Risk Insurance. Washington DC: Global Facility for Disaster Reduction and Recovery (GFDRR), pp.1- 19.
He, Q., and Faure, M. (2017). Regulation by Catastrophe Insurance for Climate Risks: A Comparative Study. SSRN Electronic Journal, 24(2), 189-243. doi: 10.2139/ssrn.3089498
Otoritas Jasa Keuangan (OJK). (2020). Statistik Asuransi Desember 2019. Retrieved from https://www.ojk.go.id/id/kanal/iknb/data-dan-statistik/asuransi/Pages/Statistik-Asuransi- Desember-2019.aspx
Otoritas Jasa Keuangan (OJK). (2020). Statistik Perasuransian (Insurance Statistics) 2019 (pp. 1-684). Jakarta: Otoritas Jasa Keuangan (OJK). Retrieved from https://www.ojk.go.id/id/kanal/iknb/data-dan-
statistik/asuransi/Documents/Pages/Statistik-Perasuransian-
/Statistik%20Perasuransian%20Indonesia%20Tahun%202019.pdf
Formulating natural disaster insurance scheme for micro,
small and medium enterprises (MSMEs) in Indonesia 259
Wibowo, A., and Deviana, F. Estimasi Kesediaan Membayar Premi Asuransi Gempa Mikro: Survei Contingent Valuation, III, 63-74. Retrieved from https://www.academia.edu/2019388/Estimating_Willingness_to_Pay_EQ_Microinsuranc e_Premium_Contingent_Valuation_Approach_in_Bahasa_Indonesia_
Willis Thailand. (2012). Thailand's New Government Insurance Responds to Flood Loss. Willis International Alert, (58), pp.1-3.
World Bank. (2006). Hazards of Nature, Risks to Development: An IEG Evaluation of World Bank Assistance for Natural Disasters (pp. 1-236). Washington DC: World Bank. Retrieved from https://openknowledge.worldbank.org/handle/10986/7001
World Bank. (2012). Mexico’s Natural Disaster Fund – A Review. Washington DC: World Bank, pp.1-78.
World Bank. (2019). The Philippines: Transferring the Cost of Severe Natural Disasters to Capital Markets (pp. 1-2). World Bank.
World Bank. (2020). Insuring Mexico against Natural Disasters (pp. 1-2). Washington DC: World Bank. Retrieved from
http://pubdocs.worldbank.org/en/737151585254940284/FONDEN-Mexico-Cat-Bond-
Case-Study-3-4-2020-final.pdf
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 The International Journal of Financial Systems
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
IJFS article's license is CC-BY-NC. Authors grant the journal/publisher publishing rights with the work simultaneously licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.