Publicação
Challenges of Home Underinsurance and a solution framework for insurance companies
| Resumo: | All over the world, evidence suggests that individuals tend to undervalue their assets. This subject seems to be particularly dramatic in the case of home insurance line of business because of its social and economical relevance. Consumers' behaviour is guided by some core principles and variables which mixed with environmental characteristics can lead in many cases to some sort of underinsurance. This work presents a framework in order to understand why individuals take insurance decisions and why they frequently underinsure their assets, by presenting the most significant causes that can help us to identify the true origin of the problem. Moreover, analysis of its consequences allows understanding of impact over economical agents, namely insurers and policyholders. Even though this issue could be also analyzed under a social perspective, involving the role of government's authorities, discussion is centered in interactions between the two sides of an insurance contract. Finally, we propose a set of solutions that may be designed in order to minimize likelihood of underinsurance. |
|---|---|
| Autores principais: | Azevedo, Ricardo André Bentes Raposo de Sousa |
| Assunto: | underinsurance insurers policyholders premium assets average clause infra-seguro subseguro seguradores tomadores de seguro activos regra proporcional |
| Ano: | 2011 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório da Universidade de Lisboa |
| Resumo: | All over the world, evidence suggests that individuals tend to undervalue their assets. This subject seems to be particularly dramatic in the case of home insurance line of business because of its social and economical relevance. Consumers' behaviour is guided by some core principles and variables which mixed with environmental characteristics can lead in many cases to some sort of underinsurance. This work presents a framework in order to understand why individuals take insurance decisions and why they frequently underinsure their assets, by presenting the most significant causes that can help us to identify the true origin of the problem. Moreover, analysis of its consequences allows understanding of impact over economical agents, namely insurers and policyholders. Even though this issue could be also analyzed under a social perspective, involving the role of government's authorities, discussion is centered in interactions between the two sides of an insurance contract. Finally, we propose a set of solutions that may be designed in order to minimize likelihood of underinsurance. |
|---|