Insurance purchases often involve a unique consumer journey. Consumers typically need education and support before making a decision, particularly given the complexity of life insurance.
Consumers often begin with limited knowledge and confidence in life insurance products. The application process is often lengthy and complex, requiring insurance companies to work to overcome these obstacles through awareness campaigns, streamlined applications, and the integration of AI and technology.
Behavioral science has become increasingly important in understanding consumer mindsets and how they make decisions about insurance. SCOR’s Behavioral Science team, in collaboration with the Université Paris Nanterre, initiated a research project in 2021 using the Discrete Choice Experiment (DCE) method. Its purpose was to examine why consumers make particular choices when purchasing life insurance. This article synthesizes the findings of the study: it focuses on consumer preferences between income and lump-sum benefit payment methods.
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