TY - JOUR
T1 - Willingness to Pay for Insurance in Denmark
AU - Hansen, Jan V.
AU - Højbjerg Jacobsen, Rasmus
AU - Lau, Morten
PY - 2016/3
Y1 - 2016/3
N2 - We estimate how much Danish households are willing to pay for auto, home, and house insurance. We use a unique combination of claims data from a large Danish insurance company, measures of individual risk attitudes and discount rates from a field experiment with a representative sample of the adult Danish population, and information on household income and wealth from registers at Statistics Denmark. The results show that the willingness to pay is marginally higher than the actuarially fair value under expected utility theory, but significantly higher under rank-dependent utility theory, and up to 600 percent higher than the actuarially fair value.
AB - We estimate how much Danish households are willing to pay for auto, home, and house insurance. We use a unique combination of claims data from a large Danish insurance company, measures of individual risk attitudes and discount rates from a field experiment with a representative sample of the adult Danish population, and information on household income and wealth from registers at Statistics Denmark. The results show that the willingness to pay is marginally higher than the actuarially fair value under expected utility theory, but significantly higher under rank-dependent utility theory, and up to 600 percent higher than the actuarially fair value.
UR - http://sfx-45cbs.hosted.exlibrisgroup.com/45cbs?url_ver=Z39.88-2004&url_ctx_fmt=info:ofi/fmt:kev:mtx:ctx&ctx_enc=info:ofi/enc:UTF-8&ctx_ver=Z39.88-2004&rfr_id=info:sid/sfxit.com:azlist&sfx.ignore_date_threshold=1&rft.object_id=954921350289&rft.object_portfolio_id=&svc.holdings=yes&svc.fulltext=yes
U2 - 10.1111/j.1539-6975.2013.12011.x
DO - 10.1111/j.1539-6975.2013.12011.x
M3 - Journal article
VL - 83
SP - 49
EP - 76
JO - Journal of Risk and Insurance
JF - Journal of Risk and Insurance
SN - 0022-4367
IS - 1
ER -