An autonomous research institute under the Ministry of Finance


Regulating consumer finance: Do disclosures matter? The case of life insurance

Publication date

Nov, 2017


NIPFP Working Paper No. 212


Monika Halan and Renuka Sane


We use a sample survey based experiment to estimate the eff ect of simplifi ed life insurance disclosures. We randomise survey respondents into one of four product advertisements: 1) a baseline product with no additional disclosure; 2) disclosure of the actual rate of return on the product; 3) disclosure of the rate of return and a benchmark return of a similar product; and 4) the rate of return, benchmark return and product features of a more cost-eff ective competing product. We test if these incremental disclosures aff ect customer views of the product, and the intention to purchase. We fi nd that relative to the baseline treatment, only treatment 2 had an eff ect on product perceptions. Treatments which show additional data did not have a di fferential e ffect relative to the baseline treatment. None of the treatments had any impact on the intention to purchase.

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