We Germans love insurance. I guess if you see your country bombed a couple of times a century, you really start to value the benefits of home insurance. The attitude towards insurance and the size of the insurance market seems very much driven by cultural differences. In general, it seems to me that countries that have a stronger tradition of financial planning like the US and the UK as well as countries that are culturally prone towards a less optimistic outlook on life (I am looking at you, my fellow Germans) have a higher demand for insurance.
Loss aversion and insurance claims
Loss aversion and insurance claims
Loss aversion and insurance claims
We Germans love insurance. I guess if you see your country bombed a couple of times a century, you really start to value the benefits of home insurance. The attitude towards insurance and the size of the insurance market seems very much driven by cultural differences. In general, it seems to me that countries that have a stronger tradition of financial planning like the US and the UK as well as countries that are culturally prone towards a less optimistic outlook on life (I am looking at you, my fellow Germans) have a higher demand for insurance.