Date of Publication :12th September 2023

Abstract: China is a vast country with frequent catastrophes, and catastrophe insurance is an important means to disperse catastrophe risks. In Chongqing, since the catastrophe insurance pilot was launched in 2017. However, the policy catastrophe insurance, which is fully funded by the government, has only 74% coverage in the city of Chongqing in 2020. Therefore, this paper focuses on the willingness of urban residents to purchase flood catastrophe insurance. The purpose of this paper is to gain an in-depth understanding of Chongqing residents' knowledge of catastrophe insurance, their acceptance attitudes, and examine their buying behavior through a questionnaire survey, analyze and test whether there is risk aversion with framing gain vs loss in commercial insurance buyers through the perspective of behavioral economics. Based on questionnaire data from all the districts and counties in Chongqing, this study uses the binary logit model to empirically analyze residents' perceptions of the factors affecting purchase intention for flood catastrophe insurance. It provides a scientific basis for subsequent research on catastrophe insurance and policies related to system development.

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