Centro de Documentacion de Fundación MAPFRE - Dynamic insurance decision-making for rare events : the role of emotions

MAP20180014710

Dynamic insurance decision-making for rare events : the role of emotions / Howard Kunreuther, Mark V. Pauly

Sumario: This paper describes the results of a web-based experiment that uses respondents' stated preferences for purchasing insurance for low-probability, high-consequence events where the probability of a loss and its consequences are stable over time. We contrast the predictions of a model of insurance choice based on expected utility [E(U)] maximisation with those of an alternative behavioural model. The majority of subjects reported insurance purchasing behaviour consistent with expected utility theory; however, a sizeable number of uninsured individuals decided to purchase insurance after learning that they had suffered a loss whereby they responded that their prior choice to be uninsured made them unhappy. In this sense, the study shows that a loss coupled with self-reported emotions linked to the loss is likely to play an important role in convincing some uninsured persons to buy coverage. In contrast, insured individuals who did not suffer a loss rarely dropped coverage

En: Geneva papers on risk and insurance : issues and practice. - Geneva : The Geneva Association, 1976- = ISSN 1018-5895. - 02/04/2018 Volumen 43 Número 2 - abril 2018 , p. 335-355

1. Toma de decisiones . 2. Comportamiento del consumidor . 3. Emociones . 4. Predicciones . 5. Modelos predictivos . I. Pauly, Mark V. . II. Título.