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Canadian Underwriter: How to convince your clients that buying insurance isn’t a waste of money

One of the biggest challenges for the insurance industry is convincing policyholders that they haven’t wasted their money if they constantly pay premiums but don’t have a claim.  To overcome this challenge, insurers should help policyholders celebrate the fact that they haven’t had a loss, said Dr. Howard Kunreuther, professor and co-director of the Risk Management and Decision Processes Center at the University of Pennsylvania’s Wharton School. He was speaking at the CatIQ Connect virtual conference last week with other experts about decision science, the interpretation of risk, and how to communicate hazards.  “If [insureds] haven’t had a loss, give them a little chit to go out to one of their favourite restaurants and celebrate the fact that they haven’t had a loss,” Dr. Kunreuther suggested during the panel, Decision Science and Risk Systems: How people think about risk, and why they react as they do. “If they renew their insurance in the following year, tell them they can celebrate that rather than thinking they’ve wasted their money.”  Read more at Canadian Underwriter.

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