Over recent years increased attention has been paid to the role of behavioural biases in financial decision making and the impact these biases have on financial choices and outcomes. In the case of insurance, these biases have been identified as having, most commonly, the potential to lead to underinsurance, but also, in some cases, over insurance choices.

• Consider third party property motor vehicle insurance decisions, an example of an insurance product where a known premium is paid for an uncertain future benefit?