This paper reviews the puzzles of insurance demand, and provides an overview of behavioural-based explanations on the concept of underinsurance. In particular, the study outlines the biases (among myopia, narrow framing and others) that help to explain the existence of those puzzles. The results indicate that biases do motivate the chances of underinsurance through sub-optimal probability weighting or wrong probability estimation of risks. We discuss that the literature has fallen short in providing possible solutions for the puzzles, with this study proposing financial literacy treatments, that aim at improving knowledge and use of finance, as a systematic solution.

中文翻译：

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保险需求及其偏向的困惑：关于行为偏向和金融知识对保险需求的作用的调查

本文回顾了保险需求的困惑，并概述了对不足保险概念的基于行为的解释。尤其是，该研究概述了有助于解释这些难题存在的偏见（近视，窄框等）。结果表明，偏差确实通过次优概率加权或错误的风险概率估计来激发保险不足的机会。我们讨论，文献不足以为难题提供可能的解决方案，而本研究提出了金融素养治疗，其目的是作为系统的解决方案来提高金融知识和使用。