If you are responsible for insurance sales, you must understand behavioural biases. They give you hints on how to increase sales. In the best interest of your customers, of course.

Editor’s Notes: We launch this article on a significant day – International Women’s Day. In the spirit of #breakthebias, we include an epilogue where we put a critical eye on gender differences in behavioural biases.

360F explains how ignoring behavioural biases impedes advisory effectiveness but actively acknowledging their presence builds up a solid advisor-client relationship.

Loss aversion motivates us to buy insurance

The loss aversion bias is the most obvious and intrinsic motivation for people to buy insurance. Behavioural economists Daniel Kahneman and Amos Tversky describe this universal bias ….