Behavioral Science
  • Articles
  • October 2016
  • 1 minute

Behavioural Economics and Insurance: An Actuary’s View

Behavioral Science: Puzzle illustration, human shape
In Brief
The psychology and drivers of choice are becoming core elements in how life insurers are looking to meet fundamental challenges. The fast-growing field of behavioural economics, which looks at how individual biases affect purchase decisions, is becoming a more significant part of how insurers are developing and selling products.

It is clear that consumer purchase decision processes, not just in insurance but across the board, tend at times to seem less than logical. Final decisions will, more often than not, be based on gut instinct, rules of thumb, and aversion to loss. At times, consumers might even seem to disregard what is in their own best interests. And this is the fundamental concept behind behavioral economics: that people make financial decisions based more on emotion rather than on rational thought and analysis. RGA's Jaqui Wassenaar discusses.

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Meet the Authors & Experts

Jaqui Wassenaar
Author
Jaqui Wassenaar
Vice President, Head of Digital Distribution, Ventures and Partnerships

References

Reprinted with permission of The Asia Insurance Review (AIR)
www.asiainsurancereview.com.