The Effects of Statistical Information on Customers’ Attitude Towards Risk and Ambiguity: Life Insurance Case

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Moazeni, Kamran | 2018

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 51029 (44)
University: Sharif University of Technology
Department: Management and Economics
Advisor(s): Talebian, Masoud; Aslani, Shirin
Abstract:
Decision about insurance is affected by how customers evaluate possible future scenarios. Our purpose is to find out whether providing statistical information about probabilities affect the customers’ willing to take life insurance or not. In other words, we want to know if people are ambiguity averse in the context of insurance. Means that if they are more willing to take insurance when the loss probability is vague or when it is known. We will separate the respondents into two groups and will provide half of them with information about the death probability in their age zone, and will not inform the other half about this probability. Then ask both groups their willingness to take a life insurance which provides coverage to his family if the person dies
Keywords:
Framing ; Risk Aversion Programming ; Ambiguity Aversion ; Insurance Decision ; Self Insurance

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