The Influence of Behavioral Factors on Insurance Decision – A Romanian Approach

Although the classical economic theory postulates that individuals should make perfectly rational choices that take into account all the available information, I will present, in the following, the action of behavioral factors on the decisions regarding the insurance against certain events. I will analyze the elements that determine a person who should be covered against a risk, not to buy insurance and the reverse situation when, although the likelihood of the event is reduced, a person will secure against the damage(s) caused by it. In this paper I developed a general approach of the behavioral factors with specific reference to the Romanian market .Finally, I will suggest the insurance companies, as well as the market regulator in Romania,different client approaches and specific protection taking into account customers’ behavioral issues and financial awareness in the field.