Flood Insurance Affordability Study: Behavioral Nudge to Increase Uptake for High-Risk Households

Affiliated institutions: Laura and John Arnold Foundation

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Description: The ideas42 team is working with a large metropolitan city’s Office of Recovery & Resiliency to develop and evaluate an intervention to increase the participation rate in its Flood Insurance Affordability Study among households in high-risk flood zones. This paper relates to this intervention – a new behaviorally informed reminder letter to increase the number of target property owners who complete the survey and receive an Elevation Certification for their property. Receiving a Last Chance Letter increased rates of survey completion among households by 4.62 percentage points within a two-week period. In other words, households who had yet to complete the flood survey were 15.5 times more likely to complete it within two weeks if they were in the treatment group. These results are statistically significant (p less than 0.01).

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