Effects of Insurance Incentives on Road Safety: Evidence from a Natural Experiment in China
by Georges Dionne (corresponding author) and Ying Liu
▪ We study the effects of insurance incentives on road safety in China
▪ We use the differences-in-differences methodology
▪ We provide evidence of a causal effect of moral hazard on accident frequency
▪ The main effect is obtained from the insurance pricing based on traffic violation
▪ The effects of basing pricing on past claims are not significant.