La mauvaise perception des risques de longévité et de dépendance ne suffit pas à expliquer la faiblesse du marché de l'assurance dépendance (au Canada)

M Martin Boyer, Philippe De Donder, Claude Fluet, Pierre-Carl Michaud and Marie-Louise Leroux
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M Martin Boyer: HEC Montréal - HEC Montréal

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Abstract: This article studies the some of the reasons underlying the under-provision of LTC insurance in Québec and Ontario. Using 2016 survey data, we demonstrate that misperception biases regarding demographic risks (of mortality and of dependency) cannot alone explain the low demand for this insurance product. Even if individual perceptions of these risks are heterogenous, individuals tend on average to over-estimate their survival probability and the probability of entering a LTC home, which should lead to over-insurance rather than to under-insurance for LTC. We show instead that the most probable reason for the under-provision of LTC insurance is that individuals do not know this financial product. Hence, if policy makers were to foster the purchase of LTC insurance, they should run advertising campaigns to inform the public about these products. Another interesting policy could be to develop bundled insurance products.

Keywords: I13; biais de perception; probabilité de survie; probabilité de perte d'autonomie; demande d'assurance soins de longue durée (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-age
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Published in Revue d'économie financière, 2023, 152 (4ème trimestre 2023), pp.185-201

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Related works:
Working Paper: La mauvaise perception des risques de longévité et de dépendance ne suffit pas à expliquer la faiblesse du marché de l'assurance dépendance (au Canada) (2024)
Journal Article: La mauvaise perception des risques de longévité et de dépendance ne suffit pas à expliquer la faiblesse du marché de l'assurance dépendance (au Canada) (2023)
Working Paper: La mauvaise perception des risques de longévité et de dépendance ne suffit pas à expliquer la faiblesse du marché de l'assurance dépendance (au Canada) (2023)
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