Seminar by Claire Mouminoux (UCSB) 

 

Title: Obfuscation and Honesty:  Experimental Evidence on Insurance Demand with Multiple Distribution Channels

 

Abstract:

 

This paper aims to shed light on the dilemma faced by insurance purchasers faced with multiple distribution channels. Should the consumer herself choose from a large set of insurance policies or rather delegate a part her decision to an intermediary who is more or less honest? We consider decisions based on a number of real-world insurance distribution channels with different information frames. Beliefs about intermediary honesty are the main determinants of individual choice. In addition, obfuscation and delegation are the main sources of inefficiency in insurance decision-making; the first because of focal point effect and the second because of intermediaries dishonesty.