Photo Meglena Jeleva

MEGLENA JELEVA

PROFESSEUR(E)

Research interests

  • arrow_right Théorie de la décision dans le risque et l'incertain
  • arrow_right Economie de l'assurance
  • arrow_right Prévention des risques environnementaux et sanitaires

Research group

    Comportements, Droits et Bien-être

Contact

2024-23

Behavioral drivers of individuals’ Term Life Insurance Demand: evidence from a Discrete Choice Experiment

Denis Charles, Magali Dumontet, Johanna Etner, Meglena Jeleva

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Abstract
Term life insurance contracts differ from one another: private information level asked to applicants, options presence in the contract, or claim payment type. Understanding how individuals’ demand is influenced by these possibilities is not straightforward. We explore socioeconomic and behavioral characteristics that might influence term life insurance demand through a Discrete Choice Experiment (DCE). On a sample representative of the French population, we estimate individuals’ characteristics that influence (1) term life insurance purchasing decision and (2) Willingness to Pay for each feature of the contract without testing new features directly in the market. In addition to socioeconomic characteristics, behavioral factors permit to better understand overall demand for term life insurance product as well as characteristics of such contract. Future concerns, optimism about survival, perceived asset management risk, and altruism influence term life insurance purchasing behavior.
Mot(s) clé(s)
Term Life Insurance, Discrete Choice Experiment, Willingness to Pay, Individual Preferences
2012-33

Underestimation of probability modifications: characterization and economic implications

Johanna Etner, Meglena Jeleva

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Abstract
The aim of this paper is to propose a behavioral characterization of individuals who underestimate probability modifications and to characterize this behavior in the standard preferences representation models under risk (Expected utility, Dual theory, Rank Dependant Utility Theory and MaxMin Expected Utility). Our main results are the following. Underreaction to probability modifications is in general independent from standard risk aversion and prudence. In models involving probability transformation functions, it is characterized by the slope of the probability transformation function. In the MaxMin Expected utility model under risk, it is related to the weights of the maximal and minimal consequences in the preferences representation function. Considering a simple prevention decision, consisting in the reduction of the probability of a monetary loss, we show that individuals who underreact to probability modifications invest less in prevention than individuals who objectively evaluate these modifications. Underreaction to probability modification is thus a possible explanation for low investment in prevention.
Mot(s) clé(s)
probability perception; non expected utility; prevention
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