Age and Gender Effects on Auto Liability Insurance Payouts

24 Pages Posted: 5 Aug 2008

See all articles by Helen I. Doerpinghaus

Helen I. Doerpinghaus

University of South Carolina - Darla Moore School of Business

Joan T. Schmit

University of Wisconsin - Madison - Department of Actuarial Science, Risk Management and Insurance

Jason Jia-Hsing Yeh

affiliation not provided to SSRN

Abstract

We examine the relationship between claimant demographic characteristics (specifically, gender, age, and marital status) and the relative size of automobile third-party settlements. We present three possible theories to explain differences in payouts associated with gender and age: variations in risk attitudes, variations in negotiating costs, and discrimination. Results of empirical testing are consistent with differences in settlement amounts, particularly with respect to gender. These differences are examined and discussed along with suggestions for future research.

Suggested Citation

Doerpinghaus, Helen I. and Schmit, Joan T. and Yeh, Jason Jia-Hsing, Age and Gender Effects on Auto Liability Insurance Payouts. Journal of Risk & Insurance, Vol. 75, Issue 3, pp. 527-550, September 2008. Available at SSRN: https://ssrn.com/abstract=1202428 or http://dx.doi.org/10.1111/j.1539-6975.2008.00273.x

Helen I. Doerpinghaus (Contact Author)

University of South Carolina - Darla Moore School of Business ( email )

1705 College St
Francis M. Hipp Building
Columbia, SC 29208
United States

Joan T. Schmit

University of Wisconsin - Madison - Department of Actuarial Science, Risk Management and Insurance ( email )

Madison, WI
United States
608-262-4240 (Phone)

Jason Jia-Hsing Yeh

affiliation not provided to SSRN

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