TED: The counterintuitive psychology of insurance | Orit Tykocinski

The video explores the perception of insurance, drawing on Kafka's analogy of insurance as a primitive religion. It discusses how insurance affects risk perception, often leading to magical thinking. The speaker examines intuitive risk assessment and how insurance marketing promotes peace of mind. The video also addresses issues of overinsurance and moral hazard, offering lessons and recommendations for both consumers and insurance companies.

According to Franz Kafka, what drives people to buy insurance?

• Magical thinking

• Rational thinking

• Social pressure

• Financial necessity

What effect does reminding people of their health insurance have, according to the study mentioned?

• Has no effect

• Encourages them to buy more insurance

• Makes them feel less at risk

• Increases their anxiety

How do people typically assess risks when deciding on insurance?

• Using intuition and emotions

• By comparing different insurance policies

• Through detailed statistical analysis

• By consulting experts

What is a common theme in insurance advertisements?

• Emphasizing low costs

• Showing images of accidents

• Highlighting potential risks

• Promoting peace of mind and security

What is the problem with being overinsured?

• It leads to higher premiums

• It complicates the claims process

• It provides too much coverage

• It can result in unnecessary debt

What is 'moral hazard' in the context of insurance?

• The challenge of setting premiums

• The ethical dilemma of selling insurance

• The tendency to take more risks when insured

• The risk of insurance fraud

Why do insurance companies include deductibles in their policies?

• To offer more comprehensive coverage

• To ensure some risk remains with the client

• To increase their profits

• To simplify the claims process

What should consumers consider when buying insurance, according to the speaker?

• The number of coverage options available

• The reputation of the insurance company

• Whether the decision is economically rational

• The cost of premiums

What does the speaker suggest insurance companies should focus on in their messaging?

• Offering discounts and promotions

• Encouraging rational and responsible purchases

• Selling peace of mind

• Highlighting the risks of not having insurance

What is the speaker's hope for the perception of studying insurance?

• That it becomes a popular career choice

• That people find it fascinating and want to learn more

• That it is seen as a necessary evil

• That it is recognized as a complex field