Behavioral models in insurance risk management


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Behavioral characteristics attributed to consumers of insurance services are a relevant factor for analyzing the current situation in the insurance market and developing effective strategies for insurers’ actions. In turn, considering these characteristics allows the insurer to be more successful in the highly competitive field, achieving mutual satisfaction in interacting with the customer.
This study is aimed to develop cognitive models of the situation (frame) “Insurance”, taking into account the specifics of the Russian insurance market and systemic factors affecting participants’ behavior in the market. In this regard, the study involves systemizing risks at various levels of the economic system, generalizing factors for the motivation of insurance consumers, developing descriptive and economic-mathematical models for the behavior of economic entities in risky situations.
The results obtained represent a behavioral model of interactions among insurance market entities, which determines opportunities for efficient and mutually beneficial coordination of their activities. The developed model includes the following elements: structured individual and institutional frames “Insurance”; a professional index of interest in insurance presented in the form of a mathematical model; methodology for governing the relationships among insurance participants in the digital environment.
The recommendations enable predictions of the situation in the insurance market and allow most accurately defining the consumer needs in the conditions of market changes.

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    • Figure 1. Factors determining the demand for insurance services
    • Figure 2. The model of economic entities’ behavior in a risky situation
    • Figure 3. Dynamics of insurance premiums in Russia, billion rubles
    • Figure 4. Structure of insurance premiums in the federal districts in 2020
    • Figure 5. Dynamics of the professional index of insurance interest
    • Table 1. Main risks at different levels of the economic system
    • Table 2. Methods for managing risks at different levels
    • Table 3. Approaches to governing interactions
    • Table 4. Customer characteristics in major insurance segments
    • Conceptualization
      Evgenija Prokopjeva, Evgeny Tankov
    • Data curation
      Evgenija Prokopjeva, Evgeny Tankov, Tatyana Shibaeva
    • Formal Analysis
      Evgenija Prokopjeva, Tatyana Shibaeva, Elena Perekhozheva
    • Investigation
      Evgenija Prokopjeva, Evgeny Tankov, Tatyana Shibaeva
    • Project administration
      Evgenija Prokopjeva
    • Software
      Evgenija Prokopjeva, Elena Perekhozheva
    • Supervision
      Evgenija Prokopjeva
    • Validation
      Evgenija Prokopjeva, Evgeny Tankov, Elena Perekhozheva
    • Visualization
      Evgenija Prokopjeva, Tatyana Shibaeva
    • Writing – review & editing
      Evgenija Prokopjeva, Evgeny Tankov, Tatyana Shibaeva
    • Funding acquisition
      Evgeny Tankov, Tatyana Shibaeva, Elena Perekhozheva
    • Methodology
      Evgeny Tankov, Tatyana Shibaeva
    • Writing – original draft
      Evgeny Tankov
    • Resources
      Tatyana Shibaeva, Elena Perekhozheva