Time: Tuesday, 04/June/2024: 12:30pm - 1:30pm Session Chair: Melek Akın Ateş |
Location: Sala Stendardo – Scuola Grande San Giovanni Evangelista San Polo, 2454, 30125 Venezia VE |
Charity hazard revisited in the context of natural catastrophe insurance: individual’s (dis)trust in the insurance industry does matter
EBS Universität für Wirtschaft und Recht, Germany
Charity hazard – tendency of individuals not to purchase insurance prompted by expectation to receive government post-disaster relief – remains one of the prevailing issues on the natural catastrophe insurance market. Research dedicated to unravelling the reasons for such behavior in the European context has so far not paid much attention to the issue of distrust citizens may express towards insurance companies. Although trust between insurers and policyholders is a foundation for the sound functioning of the insurance market, literature tackling this topic remains scarce. We are proposing an extension to the charity hazard rationale model, claiming that the level of consumers’ trust in insurers is negatively related to their propensity to engage in charity hazard. We suggest that the perception of government post-disaster help record negatively moderates this link, with different propensity levels if individuals perceive the state relief as favorable or not favorable. Wider promotion of public-private partnerships between regional governments and insurers, as well as new industry regulation and standards may help alleviate distrust in insurance providers and diminish the occurrence of charity hazard behavior.
Building resilience for natural disaster risks in multi-tier supply chains: the case of the Türkiye earthquake
1School of Business and Management, LUT University, Lappeenranta, Finland; 2Sabanci Business School, Sabanci University, Istanbul, Turkey
This study investigates how companies can prepare to and recover from natural disaster disruptions. The focus of the study is on risk management and supply chain resilience and the capabilities that companies need in the case of natural disaster disruptions. As our empirical setting, we investigate automotive and textile supply chains in the context of the Türkiye earthquake in 2023. The aim is to explore how companies can prepare for unpredictable supply chain disruptions caused by earthquakes and how they can build better supply chain resilience in the context of multi-tier supply chains. Our results show the importance of firms' dynamic capabilities in earthquake response by underscoring the critical role of sensing, seizing and reconfiguring capabilities in multi-tier supply chain resilience against earthquake risks. The results identify also the barriers and enablers of dynamic capabilities in this context by showing barriers that impede the dynamic capabilites demonstration as well as defining certain enablers that foster the development and utilization of dynamic capabilities.