Experimental Evidence on the Impact of Telematics Devices on Welfare

Item Type Monograph (Other)
Abstract

In a behavioral experiment with around 500 participants, we measured the willing- ness of insurance policyholders to pay for a telematics contract. We find that there are significant welfare costs associated with digital monitoring for which individuals need to be compensated. Our results suggest that digital monitoring causes a reduction in the willingness to pay (WTP) which is in the range of 25 to 50 percent of the expected loss. Our findings set a benchmark for the demand-side costs of telematics con- tracts that need to be contrasted with the benefits of using this technology.

Authors Biener, Christian; Eling, Martin & Lehmann, Martin
Journal or Publication Title I.VW Management Information
Language English
Subjects business studies
economics
HSG Classification contribution to practical use / society
Date 2020
Depositing User PD Dr. Christian Biener
Date Deposited 14 Dec 2020 10:47
Last Modified 14 Dec 2020 10:50
URI: https://www.alexandria.unisg.ch/publications/261686

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Citation

Biener, Christian; Eling, Martin & Lehmann, Martin: Experimental Evidence on the Impact of Telematics Devices on Welfare. [Monograph]

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https://www.alexandria.unisg.ch/id/eprint/261686
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