Despite the benefit that insurance can provide to many in the developing world, rates of take-up remain low. Prohibitive pricing has often been cited as the reason for low rates of insurance. However, even where affordable insurance packages are offered, or indeed actuarially favorable due to subsidies from governments or aid agencies, take-up rates amongst poor populations remain low. Behavioral economics can help explain this underutilization. Biased assessment of probabilities (leading people to underweight moderate probabilities, thereby believing adverse events to be less likely than they truly are), status quo bias, and present bias have been shown – or are at least suspected – to play a role in reducing demand for insurance.