Cognitive biases in advice and the psychology of insurance

A look into client decision making and its effects on protection uptake

Jaskeet Briah
clock • 5 min read

There is a lot to the science of decision-making, Jaskeet Briah finds, especially when it comes to overcoming cognitive biases that influence customer decisions in the advice process...

We would all like to think we are inherently logical, practical and pragmatic. But the reality is that most of our decisions are at a non-conscious level; we don't really know why we make the decisions that we make. This is where behavioural biases surface, interfering with best outcomes, according to We are IB psychologist and chief executive Dr Simon Moore. To understand how human behaviour influences decision-making, we must look at the science. "There are two parts of the brain: the front (the central executive) represents the pragmatic part – it likes statistics, facts and log...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Protection

The return of redundancy cover – and why it's important

The return of redundancy cover – and why it's important

Standalone unemployment insurance is making a comeback

Kesh Thukaram
clock 02 April 2025 • 3 min read
PDG responds to FCA Pure Protection Market Study update

PDG responds to FCA Pure Protection Market Study update

Expanded terms of reference

Cameron Roberts
clock 31 March 2025 • 2 min read
FCA: Protection commission ban is potential 'extreme' market study outcome

FCA: Protection commission ban is potential 'extreme' market study outcome

FCA: 'We're going into this with an open mind'

Jaskeet Briah
clock 28 March 2025 • 3 min read