Determinants Of The Intention To Purchase Flood Cover: An Empirical Evidence From A Flood-Prone Area In Malaysia

Abstract

In places where flood is a regular occurrence, it is apparent and widely known on the devastating effect of flood on property and human lives. However, statistics by Persatuan Insurans Am Malaysia (PIAM) revealed that nearly 70% of homeowners in Malaysia do not have flood insurance. Thus, this paper aims to identify the relationship between perceived flood risks, flood damage experience and charity hazard on the purchase intention towards flood cover. 100 questionnaire manage to be collected from respondents living in a flood-prone area. The paper adopts a quantitative method of research design, which utilizes descriptive analysis, correlation analysis and regression analysis to analyses the raw data. The empirical results revealed that perceived flood risk, flood damage experience and charity hazard have a significant relationship with the purchase intention towards flood cover. The implication of this paper provides evidence of the importance of flood cover in the event of flood.