Asuransi dan Pengurangan Risiko Banjir di Kabupaten Klaten

Abstract

SMEs played a major role for the Klaten Regency. However many SMEs in Klaten Regency were in floodprone area that made them have a big risk of business. Insurance could be an alternative to reduce the business risk. This study aimed to analyze the factors influencing business people of Klaten Regency in using insurance. This research used quantitative approach. The populatiion of this study were businessman in Klaten District who had been the victim of flood. The samples involved 52 people, taken through multistages sampling method. Primary data of this study was obtained through in-depth interview. This study used logistic regression analysis, where the variable was purchase decision on insurance. The independent variables were education level, income level, the distance of house with the flood source, the elevation of house with the front of the house, the number of high-risk floods during the last 1 year, the expectation of flood frequency in the next 1 year, the perception on insurance in paying claims, and the perception on inadequate flood protection system.The research concluded that education and house elevation gave positive and significant influence on insurance participation. The predicted number of floods and perception on goverment's effort in handling the floods gave negative and significant influence on insurance participation. While revenue, the distance of house with number of floods, the number of flood frequencies and the perception on the insurance in paying the claim gave no significant influence to the insurance participation.