Consumers’ Insurance Literacy
Networks Financial Institute Policy Brief No. 2011-PB-06
20 Pages Posted: 27 Jul 2011 Last revised: 28 Jul 2011
Date Written: July 27, 2011
Research seeking to understand financial literacy and to enhance it through training or education is receiving greater attention and emphasis from policymakers. Unfortunately, relatively little of this research has focused on insurance products and consumers. This policy brief reviews what is known about consumer knowledge, understanding and capability in insurance markets, focusing on two surveys of consumers’ understanding of insurance policies, terms, and concepts. Insurance disclosures and policy language are discussed in light of this evidence, and suggestions for future insurance literacy research and education are provided.
Keywords: Financial Literacy, Insurance
Suggested Citation: Suggested Citation