The risk of natural disasters has increased over the last few decades, leading to significant economic losses across the globe. In response, research related to the risk of economic loss due to natural disasters has continued to develop. At present, insurance remains the best solution for funding such losses. The purpose of this study is to analyse the development of insurance as an alternative for sustainable economic recovery after natural disasters. The data used are articles obtained from several sources indexed by Scopus and Google Scholar. The search resulted in a final database of 266 articles, culled from a total of 813 articles before the final selection was made. The articles used are publications from 2000–2021 (including 21 database periods), to which we applied a systematic literature review method. Identification and evaluation of the articles was carried out through visualization of their content, development of disaster risk insurance, and availability of disaster risk insurance by country and type. The identification results show that the relationship between the word “insurance”, according to visualization using the VOSviewer software, has a relationship with other clusters including the words “disaster”, “disaster insurance”, “risk”, “natural disaster”, “study”, “recovery”, and “disaster risk financing”. The 266 articles studied show that there was an annual increase in the number of published scientific papers over the period 2000–2021. The types of disaster risk insurance, based on a review of the articles, include agricultural insurance, flood insurance, property insurance, earthquake insurance, crop insurance, and natural disaster insurance. In addition, of the six types of disaster risk insurance, three have been discussed the most in the last five years, namely, agricultural, flood, and property insurance. The increase in the number of scientific publications discussing these three types of disaster risk insurance has been influenced by climate change. Climate change causes a significant increase in the potential for disasters and is accompanied by an increased risk of loss. This review is expected to provide information and motivation for researchers related to the development and importance of disaster risk insurance research. Research in the risk sector for disaster losses due to climate change should be continued in the future in order to help fund economic recovery, especially throughout the insurance sector. With continuous research on disaster risk insurance, it is hoped that the resulting information can be more effective in determining insurance risk and in helping local economies and communities recover after the advent of a disaster. With the availability of funds for post-disaster recovery, the regional economy affected by the disaster can be immediately restored and recovered from adversity.

The need for Sharia insurance products in the Muslim community continues to significantly increase. Sharia insurance offers sustainability in overcoming the risk of economic loss based on the principles of Islamic law. In addition, Sharia insurance can be a sustainable solution in providing risk management funds. This study aimed to analyze the development and sustainability of Islamic insurance as an alternative form of risk management, as well as its sustainability in the future. The general review is still in the form of the products offered and operational system models in the Sharia insurance industry. The systematic literature review method was used to obtain a visualization and general description of Islamic insurance, employing 774 data articles from 2010 to 2022. From the results of the analysis, it was found that research discussing Islamic insurance has demonstrated significant developments every year. Mitigating risks by offering the principles of Islamic law represents added value for the Islamic insurance industry. In addition, five models of Sharia insurance systems have been introduced and used; namely, the Mudharabah model, the modified Mudharabah model, the Wakalah model, the hybrid model, and the Waqf model. However, the products offered in Sharia insurance are not too numerous and are still focused on individual risk. Based on these results, Sharia insurance will undergo development in the future in terms of both the products offered and risk management. Of course, it can also lead to a transition to the development of sustainable Sharia insurance.

Natural disasters due to excessive rainfall often cause huge losses in the form of impacts including casualties and economic losses. To minimize casualties, disaster mitigation is needed, while financing for disasters (emergency response) and financing after disasters (rehabilitation and reconstruction) can be carried out with insurance. This paper aims to determine mitigation efforts and insurance premiums for natural disasters. The method as a mitigation effort is studied based on several methods that are suitable for the conditions of the community in areas that are often affected by disasters. Meanwhile, regarding loss insurance, the premium is calculated based on the number of cases, the rate set by the insurance company and the amount insured (loss). Based on the results of natural disaster mitigation studies, it is necessary to adjust it to the type of disaster. In the case of landslides, housing buildings must be standardized, while in cases of flooding, river normalization is required. Mitigation in general, namely the installation of disaster sirens and disaster response training. Regarding loss insurance, it is found that the optimal premium for the government and insurance companies is obtained.

Climate change that occurs causes the risk of natural disasters to continue to increase throughout the world. Economic losses are unavoidable, leading to the need for continuous innovation in post-disaster economic recovery efforts. Insurance is one of the offers in providing funding for the economic recovery that occurs. This study aimed to develop innovations and models for determining natural disaster insurance premiums with a subsidy and tax system. In addition, the developed model considers the disaster risk index in the form of the level of risk distribution, the frequency of events, and economic losses. In this study, the data used were the frequency of events and economic losses obtained from the Indonesian National Disaster Management Agency. The data used were 20 database periods from 2000 to 2019. This study used the collective risk method from the index of natural disaster risk parameters. From the results of the analysis, it was found that the level of distribution of disaster risk affected the determination of insurance premiums. The amount of insurance premiums is increasing along with the increase in the magnitude of the spread of disaster risk. In addition, if taxes and subsidies are reduced, then for high-risk areas, there will be a decrease in the burden of insurance premiums, and for low-risk areas, there will be an increase in the premium burden that must be paid. On the basis of the results of the analysis on the insurance model, it was found that the insurance premiums in each province varied. The results of this study are expected to be a reference for the government and private companies in implementing disaster insurance in Indonesia. In addition, the results of this study can be a means of developing innovations for disaster risk management that occurs.

The frequency and economic damage of natural disasters have increased globally over the last two decades due to climate change. This increase has an impact on the disaster insurance field, particularly in the calculation of premiums. Many regions have a shortcoming in employing insurance because the premium is too high compared with their budget allocation. As one of the solutions, the premium calculation can be developed by applying the cross-subsidies mechanism based on economic growth. Therefore, this research aims to develop premium models of natural disaster insurance that uniquely involve two new variables of an insured region: cross-subsidies and the economic growth rate. Another novelty is the development of the Black–Scholes model, considering the two new variables, and it is used to formulate the premium model. Following the modeling process, this study uses the model to estimate the premiums for natural disaster insurance in each province of Indonesia. The estimation results show that all new variables involved in the model novelties significantly affect the premiums. This research can be used by insurance companies to determine the premium of natural disaster insurance, which involves cross-subsidies and economic growth.

Natural disasters are increasing due to climate change, which is causing economic losses for countries affected by them. Disaster management funds need to be provided, including through purchasing insurance. Determining natural disaster insurance premiums needs to involve consideration of the geographical conditions of the country. The aim of this research was to develop a model for determining natural disaster insurance premiums using the jumping processes method and a cross-subsidy system. The model takes into account the level of economic growth and the natural disaster potential index. The data analyzed relate to cases of natural disasters and losses that occurred in each province in Indonesia. From the results of the analysis, it was found that through a cross-subsidy system, the principle of mutual cooperation can be applied in managing natural disasters. Regions with a high level of economic growth and a low natural disaster potential index need to provide subsidies to regions with a low economic growth rate and a high natural disaster potential index. It was also found that the cost of insurance premiums was influenced by the size of losses and the frequency of natural disasters in the province. The greater the potential for disasters and economic losses experienced by a province due to disasters, the greater the premium burden that must be borne, and vice versa. Based on these conditions, insurance premiums vary in each province in Indonesia. It is hoped that the results of this research can provide a reference for the government in determining policies for providing funds for natural disaster management using a cross-subsidy system. In addition, this research can provide a reference for insurance companies in determining natural disaster insurance premiums in Indonesia.