Insurance and Behavioral Economics: Improving Decisions in the Most Misunderstood Industry
| Author | : | |
| Rating | : | 4.81 (950 Votes) |
| Asin | : | 0521608260 |
| Format Type | : | paperback |
| Number of Pages | : | 338 Pages |
| Publish Date | : | 2016-11-24 |
| Language | : | English |
DESCRIPTION:
He is a former member of the advisory committee to the Agency for Health Care Research and Quality and the Medicare Technical Advisory Panel.Stacey McMorrow is a research associate in the Health Policy Center at the Urban Institute, Washington, DC. Dr Kunreuther is a member of the World Economic Forum's Global Agenda Council on Insurance and Asset Management for 2011-12
Neither is it a consumer guide to purchasing insurance, although the authors believe that consumers will benefit from the insights it contains. When it works as intended, it provides financial protection to individuals and a profitable business model for insurance firms and their investors. When actual choices stray from predictions, the behavior is considered to be anomalous. This book is neither a defense of the insurance industry nor an attack on it. The authors then consider if and how such behavioral anomalies could be modified to improve individual and social welfare. With considerable sums of money at stake, both in consumer premiums and insurance company payouts, it is important to understand the reasons for anomalous behavior. But it is broadly misunderstood by consumers, regulators, and insurance executives. Howard Kunreuther, Mark Pauly, and Stacey McMorrow examine these anomalies through the lens of behavioral economics, which takes into account emotions, biases, and simplified decision rules. Insurance is an extraordinarily useful tool to manage risk. This book looks at the behavior of individuals at risk, insurance industry decision makers, and policy makers at the local, state, and federal level involved in the selling, buying, and regulating of insurance. This may require incentives, rules, and institutions to help reduce both inefficient and a
Not much original content A pretty basic review of the fundamental of insurance economics, with a rather light literature review. A timesaver if you need the bibliography, but don't expect any bleeding edge discussion.. QuiteEconSavvy said Numbers?. Authors speak of a lack of analytical decision making in the insurance industry and proceed to provide almost no data or statistics in argumentation.. "An excellent text, not too many student oriented quizzes, but informative" according to Talley. This book didn't dwell on the Behavioral Economics as much as I expected, but did present some thoughtful ideas on insurance and the management of insurance companies. A few to many times the authors thought of things as anomalies when a fine reason exists for things being done as they are.
In this superb book, Kunreuther, Pauly, and McMorrow employ insights from behavioral economics to clarify these misunderstandings and point the way toward more rational use of insurance to enhance individual and societal welfare." Paul Slovic, University of Oregon and author of The Feeling of Risk"Regulators and policy makers have long known that consumers often make seemingly irrational choices when it comes to insurance. Drawing on behavioral economics, the authors provide a framework to understand insurance market anomalies - in both demand and supply - and to evaluate alternative policy prescriptions. Vaughan, Chief Executive Officer, National Association of Insurance Commissioners"Psychologically, it's hard for most of us