1/1/2021 — Theoretically, wealthier people should buy less insurance, and should self-insure through saving instead, as insurance entails monitoring costs. Here, we use administrative data for 63,000 individuals and, contrary to theory, find that those with more wealth have better life and property insurance coverage, controlling for the value of the assets insured.

• KEYWORD(S):
• economic outlook
• finance
• insurance

1/1/2021 — Theoretically, wealthier people should buy less insurance, and should self-insure through saving instead, as insurance entails monitoring costs. Here, we use administrative data for 63,000 individuals and, contrary to theory, find that the wealthier have better life and property insurance coverage.

• KEYWORD(S):
• insurance