Progress 10/01/98 to 09/30/03
Outputs
This research project has examined consumer knowledge and purchase behaviors in insurance markets. Consumer knowledge and purchase behaviors are important elements informing the appropriate form and scope of insurance market regulation, especially those regulations covering insurer marketing and distribution practices. The project has resulted in two articles published in refereed journals, one article published in a conference proceedings volume, and two articles in newsletters of public policy organizations. Two articles are currently in the final stages of preparation for submission to refereed journals. Additionally, new collaborative and mentoring relationships were established under the project which resulted in a senior honors thesis and a ph.d. dissertation on long term care insurance, and a project with Cornell Cooperative Extension staff to evaluate the effectiveness of a web-based personal finance curriculum.
Impacts
This research was expected to contribute advances in understanding important economic issues related to insurance distribution and its regulation, for the insurance industry and public policy makers, and for consumer educators and policy makers. The stream of publications from the project provides strong evidence of success in this regard. All of the published works have appeared in journals, conference volumes or newsletters that reach a broad audience of individuals involved in academic research, policy making, business and outreach activities.
Publications
- Tennyson, S., Nguyen, C. and Bristow, B.J. 2002. Financial Literacy: A Public Policy Issue -- The Effect of Curriculum Mandates on Student Financial Knowledge, Proceedings of the 2000 Annual Conference of the Association for Financial Planning and Counseling, November 2000.
- Tennyson, S., Bristow, B.J., and Nguyen, C. 2000. Curriculum Mandates: A Policy to Increase Financial Literacy? Jumpstart Coalition Newsletter, October 2000.
- Tennyson, S. 1999. Government Regulation of Insurer Sales Practice, Market and Public Organisation, University of Bristol, Issue 2, December 1999: 7-10.
- Tennyson, S. 2002. Insurance Experience and Consumers Attitudes Toward Insurance Fraud, Journal of Insurance Regulation, Winter 2002.
- Tennyson, S. and Nguyen, C. 2001. State Curriculum Mandates and Student Knowledge of Personal Finance, Journal of Consumer Affairs, Vol. 25, No. 2, Winter 2001: 241-262.
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Progress 01/01/02 to 12/31/02
Outputs
The research pursued under this project has been primarily directed toward consumer knowledge and purchase behaviors in insurance markets. Consumer knowledge and purchase behaviors are important elements informing the appropriate form and scope of insurance market regulation, especially those regulations covering insurer marketing and distribution practices. Under this project during the calendar year 2002 one article on the relationship between insurance experience and consumer attitudes toward insurance fraud was published, and one working paper on consumer purchase behaviors in the long term care insurance market was completed. Additional research on consumer purchase behavior in the long term care insurance market and research on consumers' knowledge and attitudes toward insurance remains ongoing.
Impacts
This research is expected to contribute advances in understanding important economic issues related to insurance distribution and its regulation, for the insurance industry and public policy makers, and for consumer educators and policy makers. Evidence of success in this regard includes: (1) The research on consumers' attitudes toward insurance fraud was published in the research journal published by the national association of state insurance regulators, and reaches both the insurance regulatory audience and insurance academics. (2) The completed working paper on consumer purchase behaviors in the long term care insurance markets was accepted for presentation at the Association of Public Policy Analysis and Management (APPAM) meetings in November 2002.
Publications
- Tennyson, S. 2002. Insurance Experience and Consumers' Attitudes Toward Insurance Fraud, Journal of Insurance Regulation, Winter 2002.
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Progress 01/01/01 to 12/31/01
Outputs
The primary focus of this project is to research consumer knowledge of insurance, of consumer purchase behaviors in insurance markets, and of the impact of education on student/consumer knowledge of insurance. Consumer knowledge and purchase behaviors are important elements informing the appropriate form and scope of insurance market regulation, especially those regulations covering insurer marketing and distribution practices. During this year an article examining the impact of mandated personal finance education on high school student knowledge was completed, presented at a national conference and published in a peer-reviewed journal. New endeavors included a telephone survey of New York state consumers regarding insurance issues. The survey collected data on consumer knowledge of insurance products, information search practices, decision making processes, confidence in decisions made, preferences for learning about insurance products, confidence in the reliability
of insurance education options available to them, and their likelihood of utilizing education materials and opportunities about insurance. These survey data are currently being analyzed to provide insights into the search and purchase behaviors of insurance consumers, and into consumers' knowledge levels and the correlates of consumer knowledge. This project was in part a collaborative effort with cooperative extension personnel interested in personal finance (including insurance) education, and will provide knowledge inputs into educational efforts and products being developed for insurance consumers. Additionally, a new research endeavor on consumer purchase behavior in the long term care insurance market has begun. Data from a sample of older New York consumers collected by the Cornell Retirement and Well-Being Survey and from a national sample of older consumers collected by the Health and Retirement Study are being analyzed to provide insights into older consumers' decisions to
purchase long term care insurance. A pilot study of the New York State Partnership for Long Term Care is also underway.
Impacts
This research is expected to contribute advances in understanding important economic issues related to insurance distribution and its regulation, for the insurance industry and public policy makers, and for consumer educators and policy makers.
Publications
- Tennyson, S. and Nguyen, C. 2001. State Curriculum Mandates and Student Knowledge of Personal Finance. Journal of Consumer Affairs, Vol. 25, No. 2, Winter 2001: 241-262.
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Progress 01/01/00 to 12/31/00
Outputs
A comprehensive survey and overview of the economic issues and existing literature on insurance distribution activities and their regulation was completed and published as a chapter in an important reference work in the insurance field, The Handbook of Insurance. A summary of the regulatory issues facing the United Kingdom has been published in a policy newsletter in that country. Econometric analysis of a national survey of high school students to determine the impact of education in consumer finance/insurance on student knowledge has been completed and research articles disseminated. A summary of the research and the issues it addresses has been published in a policy newsletter. Follow up research using a larger data set with more detailed information about student outcomes and curriculum inputs is in the planning stages. Research into use of an existing national survey of consumer search behavior in automobile insurance markets produced no useable data, and an
alternative smaller survey of New York state consumers is underway. The survey will allow examination of the relationship between individual and market characteristics and consumer search and purchase behaviors in the insurance market.
Impacts
This research has contributed advances in understanding important economic issues related to insurance distribution and its regulation for insurance researchers in an important reference work; for the insurance industry and policymakers, and for consumer ducators and policymakers, through research summaries published in public policy newsletters.
Publications
- Regan, L. and Tennyson, S. 2000. Insurance Distribution Systems. Chapter 22 in Handbook of Insurance, G. Dionne, ed. Kluwer Academic Publishers: 709-745.
- Tennyson, S. 1999. Government Regulation of Insurer Sales Practice. Market and Public Organization, Centre for Market and Public Organisation, University of Bristol, Issue 2.December: 7-10.
- Tennyson, S., Bristow, B.J. and Nguyen, C. 2000. Curriculum Mandates: A Policy to Increase Financial Literacy? Jumpstart Coalition Newsletter. October.
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Progress 01/01/99 to 12/31/99
Outputs
The research program is in the early stages, and hence there are no significant results to report at this date. Three research efforts are underway to examine the impact and potential impact of education on consumer purchase decisions in insurance markets: (1) Econometric analysis of a (new) local survey and of an (existing) national survey of high school students to determine the impact of education in consumer finance and other factors on student knowledge is nearly complete. Preliminary results suggest that an education mandate may have a positive impact on scores, if the mandate includes a specific course requirement or specific content testing. (2) An existing national survey of consumer search behavior in automobile insurance markets has been identified and the dataset is being constructed. Analysis of data to test hypotheses regarding the relationship between individual and market characteristics (including regulation) and consumer search and purchase decisions
is planned, as is another survey to examine changes over time and the impact of the internet on consumer search and purchase decisions. This is joint research with Alan Mathios, Associate Professor (PAM). (3) Preliminary work is underway to develop a study that follows consumers who participate in insurance education (plus a control group), to analyze the impact of insurance education on insurance search and purchase decisions. This project has also led to a joint research-extension project with Barbara Bristow, Extension Associate (PAM) to analyze the current knowledge and information/education requirements of New York State consumers in insurance markets.
Impacts
The research undertaken to date as part of this research program will provide greater understanding of the determinants of consumer behavior in financial markets, including education and regulation. This will aid researchers and policy makers in assessing the effectiveness of alternative forms of regulation and of education in reducing consumer information problems that may lead to poor outcomes for consumers in these markets.
Publications
- No publications reported this period
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