Selling insurance as an add on

Hyperbolic Discounting and Financial Products
Intervention Financial Products

Can insurance be an add-on?

Intervention Description

Researchers examined the effect of the structure of purchasing insurance (on its own or as an add-on) on the choices people eventually purchased. They found that in addition to the add-on structure, other factors made it less likely for consumers to search for better deals. Among these factors were increased complexity, reduced transparency, barriers, monthly prices (which appear lower than a total).