How a better understanding of behavioral economics (BE) can improve the quality of structured data and bring new insights to the underwriting process in China.
How Insurers Can Use Behavioral Economics Approaches to Make Improvements – Bringing BE to the Forefront
Heidi Alpren talks with Keith Brown, a self-described “BE enthusiast,” to hear more about how he has taken this “putting BE into action” message to heart – and how insurers can do the same.
Life insurers have taken a fresh look at their established traditional underwriting practices as they consider and implement streamlined accelerated underwriting (AU) options, removing the need for paramedical exams and/or fluid collection for qualified applicants.
Behavioral Economics may help find a balance between simplification of the underwriting process and the mitigation of risk.
Behavioral economics is an area that is making a substantial splash in many industries and insurance is no exception. Behavioral economist Matt Battersby examines how his discipline can play a role in reducing disclosure gaps.
When BE techniques are applied to insurance applications, small changes in the way that questions are designed and worded can lead to more thoughtful completion by the individual.
Slides from the presentation by Keith Brown have been posted at the the Actuaries' Club of the Southwest website.
This article from RGA considers how Behavioral Economics (BE) principles can be applied to the design of questions on insurance applications in order to elicit better responses
It seems one cannot attend a conference or pick up a trade magazine these days without finding some mention of behavioral economics (BE). From policy development and healthcare to retail and now, insurance, many industries are finding interest in this area of study. What is yet to be fully appreciated, though, is just how significantly BE can improve business outcomes for insurers.
People will alter their behavior if they see that it will bring them direct positive benefits. This contention reflects the essential principle of behavioral economics, which holds that consumers are open to influence and incentive, not just economic thoughts, when making buying choices.