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Raising the exit threshold increased willingness to pay by Rs. 11 despite increasing expected payout by Rs. 40–70, whereas reducing millimeter deficit payments reduced willingness to pay by Rs. 12–13 while only lowering expected payout value by Rs. 10–20 [19, 25-27].
Moving from the least to the most financially sophisticated quartile roughly doubled the reduction in willingness to pay for reduced payout per mm (-11.90 Rs baseline) and increased willingness to pay for a higher exit threshold (+10.86 Rs baseline) by 50%.
Moving from the lowest to highest quartile of financial sophistication roughly doubles the reduction in willingness-to-pay for reduced millimeter deviation payments (-Rs. 1.688 per quartile tier, p < 0.01), increases willingness-to-pay by 50% for policies with higher exit thresholds (+Rs. 1.116 per quartile tier, p < 0.01), and quadruples sensitivity to basis risk (-Rs. 4.007 per quartile tier, p < 0.01).