Purpose : This study examines earthquake disaster insurance and estimates the willingness to pay for earthquake insurance. Research design, data, methodology : This study apply the Contingent Valuation Method (CVM) to estimate the willingness to pay f...
Purpose : This study examines earthquake disaster insurance and estimates the willingness to pay for earthquake insurance. Research design, data, methodology : This study apply the Contingent Valuation Method (CVM) to estimate the willingness to pay for earthquake disaster insurance. For empirical analysis, data from a survey conducted on 500 residents sampled based on regional population composition were used. Results : Empirical results indicate that the willingness to pay (WTP) for earthquake insurance is 1, 148 to 1, 447 KRW per household per month. Based on this, the size of the domestic earthquake insurance market would be expected to be approximately 9.05 billion to 11.4 billion KRW. Conclusions : The current market size of earthquake insurance is limited mainly due to the lack of public awareness about it. However, the market needs to be invigorated to better prepare for the escalating situation of earthquake damage.