Irrational Policies – Why Customers Make Bad Insurance Choices

Explore the cognitive biases that push insurance buyers into irrational decisions, and get strategies to influence smarter choices.

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Why Smart Customers Still Make Risky Choices

Written by CRO expert Dr Stephen Courtney, this paper shows how biases like availability, anchoring, and loss aversion influence insurance behaviour. It is essential reading for product, marketing, UX, and compliance teams.

Learn why:

  • Why people buy insurance after distant disasters.
  • The psychology behind buying warranties.
  • Why some customers overpay to avoid minor excesses.

What's inside:

  • Under the hood of availability bias: See why natural disaster headlines drive purchase surges.
  • Warranty psychology: Discover why low-value extras feel worth it.
  • Overpaying for peace of mind: How to influence by changing excess logic.
  • Simplicity in messaging: Reduce stress and choice friction to support intuitive decisions

Irrational Policies white paper

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"Insurers design and sell their products as though customers are financial experts. This communication shortfall, combined with a disregard for customer experience, has undermined trust in providers. To restore it, insurers must redesign their policies with real customers in mind."

Stephen Courtey, Associate Director of CRO

Stephen Courtey, Associate Director of CRO