Findings from University of Pennsylvania Yields New Data on Risk Management (Do People Have a Bias for Low Deductible Insurance?): Risk Management

2022 MAR 23 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- New research on Risk Management is the subject of a report. According to news reporting from Philadelphia, Pennsylvania, by NewsRx journalists, research stated, “This paper reports on a controlled web-based experiment designed to determine whether subjects have a predisposition toward low deductible (LD) rather than high deductible (HD) insurance plans when the LD plan is the default. We also are interested in whether individuals’ choice between LD and HD plans remains consistent if the default and premiums are changed.”

Financial supporters for this research include Alfred P. Sloan Foundation, Wharton Behavioral Lab at the University of Pennsylvania, Travelers-Wharton Partnership for Risk Management, National Science Foundation (NSF) through Princeton University, Wharton Risk Management and Decision Processes Center at the University of Pennsylvania.

The news correspondents obtained a quote from the research from the University of Pennsylvania, “We find that only slightly more than half of the respondents choose a low deductible when the default option is the LD plan, and that many subjects consistently preferred the HD plan. In other words, we found no general preference for low deductible insurance.”

According to the news reporters, the research concluded: “The research presented here should be viewed as another step in highlighting the importance of understanding individuals’ decision processes associated with the purchase of insurance.”

This research has been peer-reviewed.

For more information on this research see: Do People Have a Bias for Low Deductible Insurance? Journal of Risk and Uncertainty, 2022. Journal of Risk and Uncertainty can be contacted at: Springer, Van Godewijckstraat 30, 3311 Gz Dordrecht, Netherlands. (Springer - www.springer.com; Journal of Risk and Uncertainty - http://www.springerlink.com/content/0895-5646/)

Our news journalists report that additional information may be obtained by contacting Howard Kunreuther, University of Pennsylvania, Risk Management & Decis Proc Ctr, Wharton School, 3819 Chestnut St, Suite 217, Philadelphia, PA 19104, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1007/s11166-022-09368-x. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

(Our reports deliver fact-based news of research and discoveries from around the world.)