Ploughing in Flood (IMAGE) University of Maryland Caption A University of Maryland-led study shows that subsidies can help people continually purchase insurance, but only if they have the financial literacy to understand the benefits and have the experience of seeing the policy in action. In a new paper published in American Economic Review, researchers conducted the first ever experimental study to look at the impact of subsidies. This paper provides insight into the "insurance puzzle", with implications for policy and educational programs. Credit Rajesh Ram Usage Restrictions None License Licensed content Disclaimer: AAAS and EurekAlert! are not responsible for the accuracy of news releases posted to EurekAlert! by contributing institutions or for the use of any information through the EurekAlert system.