Researchers Publish Paper on Messaging and LTC Insurance in Frontiers in Behavioral Economics
by Niels Wu
AgeLab researchers are co-authors of an article titled “The Emotional Path to Influencing Decision-Making: Harnessing Emotions for Better Financial Choices,” in Frontiers in Behavioral Economics. The paper appears alongside 10 other recently published articles about the psychology of financial management. Nadja Born, a former visiting doctoral student at the AgeLab, was the lead author of the paper, with AgeLab researchers Sophia Ashebir, Samantha Brady, Lisa D’Ambrosio, and Joseph Coughlin credited as co-authors.
The study described in the article investigated how the framing of messages surrounding long term care (LTC) insurance may impact individuals’ perceived importance of, interest in, and intentions to purchase LTC insurance, providing insight on how different kinds of messaging may influence and impact people’s attitudes and behaviors.
To explore this topic, the research team conducted an online experiment in which 1,450 American individuals in the target market for LTC insurance watched one of six short videos containing messaging about LTC insurance. While watching, individuals were continuously assessed for their emotional response to the video as well as for the factors relating to LTC insurance (perceived importance, interest, intentions to purchase). The videos were categorized by their framing as either a gain frame (benefits of LTC insurance) or a loss frame (consequences of not having LTC insurance). The videos were also categorized by what narrative framing elements they leveraged- costs associated with LTC, considerations from family members, or care type/quality.
The study found that individuals who watched a video with a loss frame experienced more anxiety-related emotions like fear and worry. This was associated with higher perceived importance of, interest in, and intentions to purchase LTC insurance. Individuals who watched a video with narrative framing around the type and quality of their future care experienced more calmness-related emotions like confidence and comfort, which were associated with the same three LTC insurance-related factors.
The AgeLab study suggests that a potential way to increase uptake of LTC insurance is to elicit anxiety-related or calmness-related emotions in messaging about the issues related to the product.
Learn more and read the full article here.
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