How the demand for insurance became behavioral

Corcos, Anne; Montmarquette, Claude; Pannequin, François

doi:10.1016/j.jebo.2020.09.001

Cited by 39 publications

(7 citation statements)

References 12 publications

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“…So to encourage the workforce to use insurance products, starting with increasing information and socializing the benefits of insurance programs for the future, because by having perfect information can change labor behavior to care more about conditions in the future. Corcos et al, (2020) Recent developments about insurance reveal a shift towards consumer behavior insurance. decisions remain rational but within a broader frame of reference or information that takes into account the role of reluctance to lose, ambiguity, framing, reference points, and emotions in individual decisions.…”

Section: Results and Discussion Descriptive Of Educated Labor Towards...mentioning

confidence: 99%

Risk aversion and labor behavior determination factors on insurance products

Affandi¹

2022

asnaf

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Purpose—The purpose of this article is to try to look at the risk aversion determination factors that encourage the behavior of the educated workforce using or not using insurance products. The indicators used are income, education level, number of Dependents, Gender, employment status, place of residence, generation group, insurance product information Method—The analysis model used is probit regression. Primary data obtained through a survey of 111 respondents and only 93 educated workers in Aceh Province met the specifications and filled in completely. Research Results—The results show that only employment status has a positive and significant effect on labor preferences for insurance products, while other factors are not significant. Limitations — This research is still limited in samples, factors that are used as objects of research and less in-depth about the role of information affecting people's behavior. This is a suggestion for researchers to further conduct more comprehensive research. Practical Implications—The results of this study can be used as a reference for the government and companies must synergize with each other in planning insurance programs. High-income workers are expected to join insurance programs, mutual care is an important social capital to maintain the economy. The government or insurance company must increase the socialization of information on the importance of insurance programs to deal with the uncertainty of future risks.

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Section: Results and Discussion Descriptive Of Educated Labor Towards...mentioning

confidence: 99%

Risk aversion and labor behavior determination factors on insurance products

Affandi¹

2022

asnaf

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“…To address this issue, we use a microgeographic approach that combines UK microdata with 1 km-by-1 km grid-level modeled data on air pollution. Thus, our analysis is timely in responding to the recent calls for more research to understand the behavioral responses to air pollution better (Corcos et al, 2020).…”

Section: The Adverse Effects Of Air Pollutionmentioning

confidence: 99%

Pollution risk and life insurance decisions: Microgeographic evidence from the United Kingdom

Adetutu,

Odusanya,

Rasciute

et al. 2024

Risk Analysis

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Recent research documents that exposure to air pollution can trigger various behavioral reactions. This article presents novel empirical evidence on the causal effect of pollution risk on life insurance decisions. We create a unique dataset by linking microgeographic air quality information to the confidential UK Wealth and Assets Survey. We identify an inverse N‐shape relationship between pollution risk and life insurance adoption by exploiting the orthogonal variations in meteorological conditions. Over a given range above a threshold of exposure, rising pollution is associated with rising demand for life insurance, whereas at lower than the threshold levels of pollution, higher exposure risk reduces demand for insurance. Our findings indicate—for the first time—a nonlinear relationship between local pollution risk and life insurance demand.

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“…Additionally, research into both flood risk management has become more behaviourally focused (Kuhlicke et al 2020b) as have recent developments in research on insurance (Corcos et al 2020). There can be greater scope for combing these developments together to better understand through which mechanisms moral hazard may or may not occur.…”

Section: Research Implicationsmentioning

confidence: 99%

The presence of moral hazard regarding flood insurance and German private businesses

Hudson

Thieken

2022

Nat Hazards

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There is a movement towards the concepts of integrated flood risk management and governance. In these concepts, each stakeholder prone to flooding is tasked with actively limiting flood impacts. Currently, relatively more research has focused upon the adaptation of private households and not on private businesses operating in flood-prone areas. This paper offers an extension of this literature on business-level flood adaptation by exploring the potential presence of moral hazard. The analyses are based on survey data collected in the aftermath of six floods across Germany between 2002 and 2013 to provide a first indication of the presence of moral hazard in private businesses. Moral hazard is where increased insurance coverage results in policyholders preparing less, increasing the risk they face, a counterproductive outcome. We present an initial study of moral hazard occurring through three channels: the performance of emergency measures during a flood, changes in precautionary behavior employed before a given flood occurred, and changes in the intention to employ additional precautionary measures after a flood. We find, much like for private households, no strong indication that moral hazard is present regarding past adaptation. However, there is a potential avenue after 2005 for insurance coverage to lower businesses’ intentions to employ more adaptation measures after a flood. This has significant policy relevance such as opportunities for strengthening the link between insurance and risk reduction measures and boosting insurance coverage against flooding in general.

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How the demand for insurance became behavioral

Cited by 39 publications

References 12 publications

Risk aversion and labor behavior determination factors on insurance products

Risk aversion and labor behavior determination factors on insurance products

Pollution risk and life insurance decisions: Microgeographic evidence from the United Kingdom

The presence of moral hazard regarding flood insurance and German private businesses

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