In this paper, we demonstrate that more consumer-friendly manuals are likely to help consumers better understand insurance products. In a social experiment, two groups of participants read two different versions of insurance manuals – the current version and the consumer-friendlily revised version - for a variable annuity product, which was followed by the assessment of their understanding of the product. Together with the OLS and the propensity score matching estimation, our results suggest that, in terms of the four questions where the two groups differed significantly, the percentage of correct answers from our consumer-friendly manual group is, on average, 18-23 percentage points higher than that from the current manual group.
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@article{ART001854176}, author={황진태 and Hae Won Byun and 김해식}, title={Estimating the Effects of Improving a Key Features Document of Variable Life Insurance}, journal={Journal of Insurance and Finance}, issn={2384-3209}, year={2014}, volume={25}, number={1}, pages={3-27}
TY - JOUR AU - 황진태 AU - Hae Won Byun AU - 김해식 TI - Estimating the Effects of Improving a Key Features Document of Variable Life Insurance JO - Journal of Insurance and Finance PY - 2014 VL - 25 IS - 1 PB - Korea Insurance Research Institute SP - 3 EP - 27 SN - 2384-3209 AB - In this paper, we demonstrate that more consumer-friendly manuals are likely to help consumers better understand insurance products. In a social experiment, two groups of participants read two different versions of insurance manuals – the current version and the consumer-friendlily revised version - for a variable annuity product, which was followed by the assessment of their understanding of the product. Together with the OLS and the propensity score matching estimation, our results suggest that, in terms of the four questions where the two groups differed significantly, the percentage of correct answers from our consumer-friendly manual group is, on average, 18-23 percentage points higher than that from the current manual group. KW - Variable Annuity;Key Features Document;Propensity Score Matching DO - UR - ER -
황진태, Hae Won Byun and 김해식. (2014). Estimating the Effects of Improving a Key Features Document of Variable Life Insurance. Journal of Insurance and Finance, 25(1), 3-27.
황진태, Hae Won Byun and 김해식. 2014, "Estimating the Effects of Improving a Key Features Document of Variable Life Insurance", Journal of Insurance and Finance, vol.25, no.1 pp.3-27.
황진태, Hae Won Byun, 김해식 "Estimating the Effects of Improving a Key Features Document of Variable Life Insurance" Journal of Insurance and Finance 25.1 pp.3-27 (2014) : 3.
황진태, Hae Won Byun, 김해식. Estimating the Effects of Improving a Key Features Document of Variable Life Insurance. 2014; 25(1), 3-27.
황진태, Hae Won Byun and 김해식. "Estimating the Effects of Improving a Key Features Document of Variable Life Insurance" Journal of Insurance and Finance 25, no.1 (2014) : 3-27.
황진태; Hae Won Byun; 김해식. Estimating the Effects of Improving a Key Features Document of Variable Life Insurance. Journal of Insurance and Finance, 25(1), 3-27.
황진태; Hae Won Byun; 김해식. Estimating the Effects of Improving a Key Features Document of Variable Life Insurance. Journal of Insurance and Finance. 2014; 25(1) 3-27.
황진태, Hae Won Byun, 김해식. Estimating the Effects of Improving a Key Features Document of Variable Life Insurance. 2014; 25(1), 3-27.
황진태, Hae Won Byun and 김해식. "Estimating the Effects of Improving a Key Features Document of Variable Life Insurance" Journal of Insurance and Finance 25, no.1 (2014) : 3-27.