engleski

Insurance Literacy and Risk Perception

Insurance products are one of the solutions for decreasing and absorption of personal financial risks. Insurance literacy as a component of financial literacy plays a very important role in purchasing decisions of the consumers of insurance products. Another factor that influences consumption is perception and attitudes toward a risk that individuals have. This study aims to investigate the strength of the influence of insurance literacy and risk perception on the frequency of consumption of insurance products. Targeted groups are employees of University of Split and Polytechnic of Šibenik. The research was supported by the Perception Formation Model and the results of previous research. Primary data has been collected from targeted respondents and analysed by use of adequate statistical methods. Results, as expected, show a correlation between attitudes toward risk and consumption of personal insurance products. Also, analysed results, suggest a direct correlation between insurance literacy level and frequency of usage of personal insurance products. This study is a pioneer study in Croatia, and findings will be of great interest to academicians and policymakers to encourage personal insurance as a tool in achieving financial security and well-being for citizens of Croatia. Recommendations and suggestions for improvement are provided based on obtained results.

insurance literacy, personal insurance, trustfulness on insurance, perceived risk, insurance education

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