The European Commission has published a final report of a study on consumers’ decision-making in insurance services: A behavioural economics perspective.
The study sought to explore and understand consumers’ decision-making in the non-life insurance market when purchasing domestically and cross-border, to test remedies aimed at helping consumers make better decisions, and to collect complementary data on the supply side of the market. Countries covered in the study include the UK.
The main conclusions of the study can be grouped into the three broad categories: (i) information, advice and the purchasing process, (ii) behavioural and consumer-related factors, and (iii) data availability.
Some of the recommendations arising from the study include to:
- improve information provision;
- facilitate consumers’ decision-making in insurance purchases;
- address pressure selling;
- harmonise definitions and contract formats;
- establish standards for price comparison websites;
- make it easier to switch between insurance products;
- collect more data on insurance markets; and
- encourage cross-border insurance.