Willingness to pay for flood insurance: a case study in Phang Khon, Sakon Nakhon Province, Thailand

Long droughts and floods can reduce agricultural productivity and negatively impact upon businesses in the agriculture and food industries. The prevention and response to floods require both public and private efforts (e.g., "Pay for Flood" insurance) for utmost effectiveness. The purpose of this study was to determine the potential factors that influence the people of Phang Khon District, near the Nam Un Dam, in paying flood insurance. The regression results showed that the height and duration of flooding, house price, and flood damage, were all key factors that triggered the willingness to pay flood insurance. In contrast, having a house with stairs decreased the likelihood of paying insurance. Our research suggested that 12.69 - 19.04 USD/month is a commonly accepted flood insurance premium in Thailand. These findings can guide governments and insurance providers and companies towards improving their flood insurance practices.