TY - JOUR
T1 - Probit Modeling of Indonesian Economic and Social Factors to the Interest in Purchasing Flood-Impacted Insurance Products
AU - Hikmah, Yulial
AU - Yuristamanda, Vindaniar
AU - Hikmah, Ira Rosianal
AU - Safitri, Karin Amelia
N1 - Funding Information:
The authors would like to thank the residents of East Jakarta who are willing to be respondents in this research, especially the heads of RT and RW, who have allowed the author to conduct this research. The authors also thank the surveyors who helped the authors to obtain the data needed in the study while still implementing health protocols. This research was sponsored by the PUTI Grant Program of Universitas Indonesia, 2020. The authors would also like to express their
Publisher Copyright:
© Iran University of Science and Technology 2022.
PY - 2022/6/1
Y1 - 2022/6/1
N2 - For tropical countries such as Indonesia, flooding is generally caused by high rainfall above normal. Almost all cities in Indonesia experience flooding every year, including DKI Jakarta, the capital city of Indonesia. Based on data from the National Disaster Management Agency (BNPB) in 2020, East Jakarta is a city that is prone to flooding. Because there are so many losses caused by flooding, it is necessary to have a disaster mitigation effort to minimize the possible risk of flooding. One risk mitigation due to natural disasters is buying insurance products. However, not all people buy flood-impacted insurance products because of their economic and social factors. This research aims to create a model with Probit Regression Model to determine the factors that influence Indonesian's interest in buying flood-impacted insurance products. The results show that eight (8) factors significantly affect Indonesia's interest in purchasing flood-impacted insurance products, namely X1 (Contract/Lease and Family Owned), X2 (Married), X4 (Age of the Head of the Household), X7 (Has experienced a flood), X8 (Frequency of flood experience), X9 (flood height), and X15 (Total Property Loss due to flooding). In the end, this research calculated the level of model accuracy and obtained 84.3%.
AB - For tropical countries such as Indonesia, flooding is generally caused by high rainfall above normal. Almost all cities in Indonesia experience flooding every year, including DKI Jakarta, the capital city of Indonesia. Based on data from the National Disaster Management Agency (BNPB) in 2020, East Jakarta is a city that is prone to flooding. Because there are so many losses caused by flooding, it is necessary to have a disaster mitigation effort to minimize the possible risk of flooding. One risk mitigation due to natural disasters is buying insurance products. However, not all people buy flood-impacted insurance products because of their economic and social factors. This research aims to create a model with Probit Regression Model to determine the factors that influence Indonesian's interest in buying flood-impacted insurance products. The results show that eight (8) factors significantly affect Indonesia's interest in purchasing flood-impacted insurance products, namely X1 (Contract/Lease and Family Owned), X2 (Married), X4 (Age of the Head of the Household), X7 (Has experienced a flood), X8 (Frequency of flood experience), X9 (flood height), and X15 (Total Property Loss due to flooding). In the end, this research calculated the level of model accuracy and obtained 84.3%.
KW - Flood
KW - Insurance
KW - Probit regression model
KW - Risk mitigation
UR - http://www.scopus.com/inward/record.url?scp=85138800718&partnerID=8YFLogxK
U2 - 10.22068/ijiepr.33.2.13
DO - 10.22068/ijiepr.33.2.13
M3 - Article
AN - SCOPUS:85138800718
SN - 2008-4889
VL - 33
JO - International Journal of Industrial Engineering and Production Research
JF - International Journal of Industrial Engineering and Production Research
IS - 2
ER -
