Francisco Pitthan|Kristof De Witte
Puzzles of insurance demand and its biases: A survey on the role of behavioural biases and financial literacy on insurance demand
KU Leuven|KU Leuven|United Nations University – Maastricht Economic and Social Research Institute on Innovation and Technology
paper reviews puzzles insurance demand provides overview behaviouralbased explanations concept underinsurance particular study outlines biases among myopia narrow framing others help explain existence puzzles results indicate biases motivate chances underinsurance suboptimal probability weighting wrong probability estimation risks discuss literature fallen short providing possible solutions puzzles study proposing financial literacy treatments aim improving knowledge use finance systematic solution