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Participation in the National Flood Insurance Program: An Empirical Analysis for Coastal Properties
Author(s) -
Kriesel Warren,
Landry Craig
Publication year - 2004
Publication title -
journal of risk and insurance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.055
H-Index - 63
eISSN - 1539-6975
pISSN - 0022-4367
DOI - 10.1111/j.0022-4367.2004.00096.x
Subject(s) - flood myth , sample (material) , business , empirical evidence , flood insurance , empirical research , actuarial science , geography , philosophy , chemistry , archaeology , epistemology , chromatography
A perennial question about the National Flood Insurance Program is: how can participation be increased? An empirical analysis of individual‐level data reveals that in a sample of coastal areas the participation rate is 49 percent of eligible properties. Participation responsiveness to price is inelastic, but it has been increased by the mandatory purchase requirements for mortgage borrowers. Easing conditions for participation in the program would probably not reduce flood control measures, such as seawalls, which may degrade beach conditions and coastal ecosystems.