Behavioral bias and the demand for bicycle and flood insurance

被引：44

作者：

Browne, Mark J. ^{[1
]}

Knoller, Christian ^{[2
]}

Richter, Andreas ^{[2
]}

机构：

[1] St Johns Univ, Robert Clements Distinguished Chair, Sch Risk Management, Tobin Coll Business, New York, NY 10003 USA

[2] Univ Munich, Munich Risk & Insurance Ctr, Munich, Germany

来源：

JOURNAL OF RISK AND UNCERTAINTY | 2015年 / 50卷 / 02期

关键词：

Decision making under risk; Risk assessment; Insurance demand; DISASTER; RISKS; PROTECTION; DECISIONS; ECONOMICS; LOSSES; DONT;

D O I：

10.1007/s11166-015-9212-9

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

With data from an insurer that provides coverage for both a low probability, high consequence (LPHC) risk (the flood peril) and a high probability, low consequence (HPLC) risk (bicycle theft), we investigate behavioral bias in the demand for insurance. Our analysis provides evidence which is consistent with a preference for insurance for HPLC risks over LPHC risks: we find that many more policyholders purchase add-on coverage to their homeowner's insurance to cover the risk of bicycle theft than to cover the risk of loss due to flooding. In addition, we find mixed evidence on whether policyholders' insurance coverage decisions are responsive to changes in their risk exposure. We find a strong relationship between wealth and the demand for both types of coverage.

引用

页码：141 / 160

页数：20

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