Product focus needs to move away from "rational" consumer mindset: Lubczanski

"We have to be prepared to make sacrifices and take some risks"

Hemma Visavadia
clock • 2 min read

Insurers need a different approach to designing products for a rational consumer that doesn’t exist, said Dr Lizzy Lubczanski, client solutions manager for UK&I Life & Health at Swiss Re, during the recent Protection Review 2022 conference.

During her presentation, Lubczanski explained that insurers may sometimes assume "if we build, they will come" in relation to its product development, but questioned whether these products are designed for the right consumer  instead of the idea of a "rational" consumer which she stated does not exist. She explained that providers may have an implicit assumption that the customer is a rational agent and is going to be motivated by money, making decisions based on as much information as possible: "I think we believe that people should rationally want a product that's at the lowest possibl...

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