Turning client suitability into a science
Financial advisors in many countries are now required to offer financial products adapted to their client’s risk profile. However, more than 10 years after the enactment of this new requirement,…
Cognitive biases and risk decision-making
Behavioral finance uses psychological insights to inform financial theory. Behavioral finance holds that we do not behave like the rational and self-interested agent of economic theories. Homo Sapiens is not…
Behavioral finance and social preferences
Behavioral Economics research – and later, Social Preferences research – started with lab experiments in the 1970s, where experimental
The Allais Paradox or the limits of rationality
Let's play two little games! First game: Imagine you have to push one of two buttons: If you push the blue button, you are guaranteed to receive $1 million directly…
Covid-19 vaccine: decisions under uncertainty
Would you accept the Covid-19 AstraZeneca vaccine if you had to make that choice today? You may have had this kind of conversation recently with your friends and family and…
The 2018 European policy on insurance companies and product (IDD)
In 2018, the Insurance Distribution Directive (IDD) will be gradually implemented throughout