This report explores the consumer's innate or non-finance based
sense of risk as a determinant of their insurance-specific
perception of risk. In addition to this, policy take-up rates and
levels of cover are set against intuited or psychological demand
for cover and actual/financial premiums.
Respondents are tested for the 'pseudo-certainty effect';
calculating the propensity for consumers to make risk averse
choices when outcomes are framed in a positive manner, as well as
their willingness to take risk-seeking actions in order to avoid
negative outcomes. Analytically derived customer typologies - such
as 'loss blasé', 'loss sensitive' and 'loss averse' - lend a
greater context to these figures.
The report also looks at acceptable maximum premium levels
required to cover assets valued at £10,000. Where the desire for
cover and the willingness to pay a higher premium are directly
proportional for the most part, YouGov has calculated a 'point of
diminishing return' where the rate at which the consumer craves
cover exceeds their willingness to pay a higher premium.
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