How does selling insurance as an add-on affect consumer decisions?

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Behavioural economics tells us that consumers do not always make decisions in the ways that regulators have traditionally assumed.

The FCA's first experience of using experimental methods  to investigate consumer behaviour formed part of its  market study on general insurance products commonly sold as add-ons (the GIAO study).

This research demonstrates the value of these methods for regulatory analysis and how selling insurance as an add-on affects consumer decisions.