Abstract—The ever increasing pressure for better competitiveness in the insurance industry calls for models, methods and tools that can improve the analysis and understanding of insurance consumer behaviour. In this paper we elaborate on the conceptualisation of insurance consumer behaviour and propose a possible underlying model that reflects its core features. Subsequently we describe an agent-based-model simulation environment that enables the analysis of consumer behaviour towards insurance services. The proposed modelling approach takes into account both the price-quality trade-off of the insurance services, including the decoy effect, and the influence of the social network of the consumers. Experimental results show that the proposed approach enables the simulation of the decoy effect and the identification of the best price-quality trade-off of the decoy when promoting insurance services against each other.
Index Terms—agent-based-model, competitiveness, consumer behaviour, decoy effect, insurance services.
A. Ulbinaitė and M. Kučinskienė are with the Business Department, Vilnius University, Lithuania. E-mail: (aurelija.ulbinaite@ef.stud.vu.lt, marija.kucinskiene@ef.vu.lt).
Y. L. Moullec is with the Technology Platforms Section, Department of Electronic Systems, Aalborg University, Denmark (e-mail: ylm@es.aau.dk).
Cite: Aurelija Ulbinaitė, Marija Kučinskienė, and Yannick Le Moullec, "Conceptualising and Simulating Insurance Consumer Behaviour: an Agent-Based-Model Approach," International Journal of Modeling and Optimization vol. 1, no. 3, pp. 250-257, 2011.
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