Arbeitspapier

Law versus economics? How should insurance intermediaries influence the insurance demand decision

How should intermediaries influence the insurance demand decision? The answer must refer to the interdependence of economic determinants and legal duties. Intermediaries potentially guide demand decisions by delivering objective information and by considering individuals' situation and economic circumstances. The economic theory provides determinants that are essential for the insurance demand decision. Undoubtedly, consumers lack information about certain variables, and therefore misjudge their demand for insurances. In response to the consumer, an intermediaries' task is to discover possible misjudgments and to provide the correct information. Since the information in the insurance market is asymmetrically distributed, an insurance agent has an incentive to behave opportunistically, a tendency that is reinforced by the remuneration scheme in Germany. In 2007/2008, insurance intermediaries became regulated by law. That law states, among other things, the four basic obligations of insurance intermediaries and a liability rule to sanction violations. In order to interpret and substantiate the legal terms, those have to match the relevant economic determinants to state the ideal behavior of an intermediary.

Sprache
Englisch

Erschienen in
Series: Working Paper Series in Economics ; No. 299

Klassifikation
Wirtschaft
Insurance; Insurance Companies; Actuarial Studies
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
Information and Uncertainty: Other
Regulation and Business Law: Other
Legal Procedure, the Legal System, and Illegal Behavior: General
Thema
insurance
insurance intermediation
advice
liability
Insurance Contract Act

Ereignis
Geistige Schöpfung
(wer)
Pape, Annika
Ereignis
Veröffentlichung
(wer)
Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre
(wo)
Lüneburg
(wann)
2013

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Pape, Annika
  • Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre

Entstanden

  • 2013

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