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Insurance holdings: Does individual insurance literacy matter?

Author

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  • Bongini, Paola
  • Cucinelli, Doriana
  • Soana, Maria Gaia

Abstract

Using a representative sample and a measure of insurance literacy developed and validated by an insurance supervisor, this study tests the impact of insurance literacy on the holding of insurance products in Italy. We show that insurance literacy influences insurance purchase decisions along with age, marital status, education, employment status, and having children. The greater the literacy, the higher the individual's participation in the insurance market. Given the lower level of insurance literacy compared to financial literacy, policymakers and institutions must provide more insurance education.

Suggested Citation

  • Bongini, Paola & Cucinelli, Doriana & Soana, Maria Gaia, 2023. "Insurance holdings: Does individual insurance literacy matter?," Finance Research Letters, Elsevier, vol. 58(PC).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pc:s1544612323008838
    DOI: 10.1016/j.frl.2023.104511
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    More about this item

    Keywords

    Insurance literacy; Insurance holdings; Consumer financial decision;
    All these keywords.

    JEL classification:

    • G5 - Financial Economics - - Household Finance
    • G52 - Financial Economics - - Household Finance - - - Insurance
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy

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