Near-losses in insurance markets : an experiment

2022/10/26 by Heinrich, Timo, Seifert, Matthias, Then, Franziska
#Insurance #Markets #Near-losses #Near-miss events #Strategic uncertainty #Wirtschaft

paper · doi:10.15480/882.4666

Abstract

Several studies report changes in risk taking subsequent to experiencing near-loss events. We disentangle strategic and non-strategic reactions to such near-losses experimentally. We observe that near-losses affect the supply and demand for insurance under strategic uncertainty but not individual evaluations.

Related

• Impact of Loss-Framing and Risk Attitudes on Insurance Purchase: Insights from a Game-like Interface Study
• A Theoretical Framework Bridging Model Validation and Loss Ratio in Insurance
• An Experiment on Risk Taking and Evaluation Periods
• Insurance policy value and Pareto-optimal retention in the hypothesis of rare loss events
• Stochastic Loss Reserving: Dependence and Estimation