Using practical and social information to influence flood adaptation behavior

As the prospect for more frequent and severe extreme weather events gains scientific support, many nations are evaluating mitigation and adaptation options. Insurance and home retrofits could reduce household welfare losses due to flood events. Yet even after disasters, households often fail to take risk mitigation actions. This paper presents the first randomized field experiment that tests the effect of information provision on household uptake of flood insurance and home retrofits. A sample of 364 flood-prone households in Bangkok was randomly split into treatment and control groups. The treatment group received practical details on home retrofits and flood insurance as well as social information regarding the insurance purchase decisions of peers. Results indicate that the information intervention increased insurance purchases by about five percentage points, while no effect was detected for home retrofits. This effect is nearly equal to the increase in uptake that the national insurance program in Thailand has achieved through all other means since its establishment in 2012. If scaled up to include all uninsured, flood-prone households in Bangkok, nearly 70,000 additional households could be insured. The results suggest that well-designed information interventions could increase uptake of flood insurance, without additional premium subsidies or mandates.