Determinants of Enrollment in Storm, Flood, and Earthquake Insurance by Product Type: Focus on Fixed-Effects Models

This study analyzed the effects of paid claims, government subsidy rates, and disaster relief grants, among other factors, on enrollment in Storm, Flood, and Earthquake Insurance by product type. The study employed a fixed-effects model and proposed policy improvements to analyze panel data constructed from the insurance records of 229 local governments from 2013 to 2025. The analysis showed that the previous year's paid claims and government subsidy rates had significant positive associations with driving enrollment; however, the specific operational mechanisms exhibited heterogeneous patterns across product types. Specifically, the number of disaster relief grants suggested the potential emergence of a risk-perception effect that encourages enrollment as the disaster scale expands in indemnity-type products. However, it demonstrated a tendency to crowd out contract counts in group insurance products centered on tenants and vulnerable populations. Based on the heterogeneous determinants of enrollment across insurance products, this study proposed policy recommendations, including the realization of customized coverage limits and introduction of an automatic enrollment system for group insurance.