Do you want some cash-back? Assessing the demand for a no-claim rebate life-insurance product

Francisco Galarza () and Ingo Outes Leonb
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Ingo Outes Leonb: University of Oxford

No 16-04, Working Papers from Centro de Investigación, Universidad del Pacífico

Abstract: We designed and implemented a field experiment in rural Peru, in order to examine the sensitivity of the demand for micro life-insurance products to the introduction of rebates (cash-backs), which are partial refunds of the insurance premium when no insured event occurs. We find that cash-backs do appear to create higher levels of trust between the insurer and the insurance policy holder, thus offering the promise to increase the demand for insurance. This result suggests that cash-backs can be an attractive product innovation in developing countries.

Keywords: Cash-back; life micro-insurance; experimental economics (search for similar items in EconPapers)
Date: 2016-06
New Economics Papers: this item is included in nep-exp, nep-ias and nep-pay
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Persistent link: https://EconPapers.repec.org/RePEc:pai:wpaper:16-04

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