Centro de Documentacion de Fundación MAPFRE - Who can see it coming? Demand-side selection in long-term care insurance related to decision-making abilities

MAP20240014049

Who can see it coming? Demand-side selection in long-term care insurance related to decision-making abilities / Timo R. Lambregts y Frederik T. Schut

Sumario: Despite the growing demand for long-term care (LTC), the uptake of private LTC insurance (LTCI) is low and even declining in the United States. One reason is the complexity of LTCI decisions. Researchers have therefore suggested to support decision-making abilities. This paper shows, however, that such support would not unambiguously enhance functioning of the LTCI market. We analyze whether selection arises from two correlated but different decision-making abilities at old age, education and numeracy, and interactions thereof with private information. Using historical data from the Health and Retirement Survey we find that education generates adverse selection, which is only partially offset by advantageous selection due to numeracy

En: The Journal of risk and insurance. - Nueva York : The American Risk and Insurance Association, 1964- = ISSN 0022-4367. - 02/09/2024 Volumen 91 Número 3 - septiembre 2024 , p. 697 - 719

1. Mercado de seguros . 2. Toma de decisiones . 3. Seguros . 4. Seguro de dependencia . 5. Salud . 6. Servicios asistenciales . I. Schut, Frederik T. . II. Título.