This study examines how basis ambiguity influences the demand for index insurance. Ambiguity is introduced into the … and the index individually. Basis ambiguity lowers the demand for index insurance and increases the threshold to hold the … index insurance. This is a possible explanation for the very low demand and participation in index insurance. Further, we …

-compatible insurance demand experiment in which we manipulate the information disclosed to subjects. We test whether any of the three most … commonly suggested disclosures affect insurance demand, disclosing either (1) the true probability of loss, (2) the contract …, subjects in the laboratory demonstrate significant demand for high-load insurance against modest stakes. However, we find no …

consumption insurance. Based on insights from a theoretical model, we propose a new test to detect advance information, which … to a significant overestimation of consumption insurance and even more so at the bottom of the wealth distribution. …

The demand for insurance, notably home and property insurance in Nigeria, is unresearched and ignored, coupled with the … significant determinants of home and property insurance demand. In contrast, the non-performance of the insurance companies in … managing primary risks shows a negative and significant impact on insurance demand purchase. Interestingly culture, religion …

We explore the effects that optimism bias has on the demand for insurance. Our theory is based on a simple binomial … model of the demand for insurance in which consumers make optimistically biased assessments concerning the likelihood of … future outcomes. From this model, we derive an insurance demand equation from which we obtain empirically testable …

The real-world insurance markets show that the experience of having an accident increases insurance purchases in the … next period relative to insurance purchases when in the immediately prior period there was no accident. There have been … the present paper, using a simple two-period model of intertemporal insurance, we posit a second reason for the effect …

We study optimal insurance demand for a risk- and ambiguity-averse consumer under ambiguity about contract … nonperformance. Ambiguity aversion lowers optimal insurance demand and the consumer's degree of ambiguity aversion is negatively … optimal demand for insurance, and we determine sufficient conditions for a negative effect. We also discuss wealth effects and …

. We derive new theoretical results on the effects of probability weighting in the context of common insurance demand …Probability weighting is often used to explain insurance choices that conflict with expected utility (EU) preferences … comparative statics. In a binary-risk model, probability weighting predicts higher demand than EU alone, explaining commonly …

This article studies insurance demand in a two-period framework in which an individual faces risks in both current and … unambiguously reduce risk, and decision-makers might demand more insurance when there is a positive loading on the premium than when … the insurance price is actuarially fair. We compare the demand for insurance in our framework with that in a two …

insurance demand or consumption. Empirical research on risk aversion may be categorized into two main areas, i.e. 1) the …. The paper reviews this literature as well as empirical studies on the demand for insurance considering the use of …