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Willingness to pay for insurance in Denmark.

Hansen, J.V. and Jacobsen, R.H. and Lau, M.I. (2016) 'Willingness to pay for insurance in Denmark.', Journal of risk and insurance., 83 (1). pp. 49-76.


We estimate how much Danish households are willing to pay for auto, home, and house insurance. We use a unique combination of claims data from a large Danish insurance company, measures of individual risk attitudes and discount rates from a field experiment with a representative sample of the adult Danish population, and information on household income and wealth from registers at Statistics Denmark. The results show that the willingness to pay is marginally higher than the actuarially fair value under expected utility theory, but significantly higher under rank-dependent utility theory, and up to 600 percent higher than the actuarially fair value.

Item Type:Article
Full text:(AM) Accepted Manuscript
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Publisher statement:This is the peer reviewed version of the following article: Hansen, J. V., Jacobsen, R. H. and Lau, M. I. (2016), Willingness to Pay for Insurance in Denmark. Journal of Risk and Insurance, 83(1): 49-76, which has been published in final form at This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.
Date accepted:28 March 2013
Date deposited:18 July 2014
Date of first online publication:26 July 2013
Date first made open access:26 July 2016

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