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%.
|Journal||International Journal of Industrial Engineering and Production Research|
|Publication status||Published - 1 Jun 2022|
- Probit regression model
- Risk mitigation