PhD defence T.R. (Timo) Lambregts

Consumer Decisions in Insurance Markets: Analyzing demand for long-term care insurance and mental health care

Prof. dr. F.T. Schut


Prof. dr. H. Bleichrodt

Thursday 28 Apr 2022, 15:30 - 17:00
PhD defence
Senate Hall
Erasmus Building
Campus Woudestein
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On 28 April 2022, T.R. Lambregts will defend his PhD dissertation, entitled: ‘Consumer Decisions in Insurance Markets: Analyzing demand for long-term care insurance and mental health care’.

Dissertation in short:

We don’t fully understand insurance markets. For example, the demand for long-term care insurance falls far behind economic predictions. However, understanding of insurance markets is of great importance, as insurance is pivotal in financing health care. Therefore, this thesis aims to expand our understanding of insurance markets. To that end, it studies markets for voluntary long-term care insurance and the Dutch market for insured mental health care.

The results show that there are multiple explanations for low insurance demand. First, preferences deviate from those assumed in economic models. For example, the demand for insurance is lower, when it is unknown whether the insurance will reimburse claims. Second, not everyone has the same abilities. People with greater abilities are more likely to hold insurance. And insurance holding better reflects their expected care needs. Third, insurance holding is concentrated among those who expect to need care.

What do these results tell us? In part, low insurance holding simply mirrors preferences. But in part it is also a product of inequalities in health and capabilities. Such inequalities are not easily reduced. This thesis finds that increasing decision-making abilities may increase inequalities by health. Individual mandates or other coverage requirements may do a better job at equalizing coverage. At the same time, this thesis shows that – in Dutch mental health care – coverage has a substantial impact on care use. Presumably, this effect is less pronounced for nursing home care. Still, this result emphasizes the importance of a careful trade-off between risk protection and efficiency.

More information

The public defence will begin exactly at 15.30 hrs. The doors will be closed once the public defence starts, latecomers may be able to watch on the screen outside. There is no possibility of entrance during the first part of the ceremony. Due to the solemn nature of the ceremony, we recommend that you do not take children under the age of 6 to the first part of the ceremony.

A live stream link has been provided to the candidate.

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