WILLINGNESS TO PAY FOR INSURANCE IN DENMARK

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.

• Publication year

  2016

• Venue

  Journal of Risk and Insurance

• Publication date

  2016-03-01

• Fields of study

  Economics

• Identifiers
  DOI 10.1111/J.1539-6975.2013.12011.X
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

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