Young consumers do not always trust insurance companies.
That’s one example of a study of consumers ages 21 to 42 by the Society of Actuaries Research Institute, which released its findings Tuesday. On a scale of 1-10, trust in insurance companies was set at a not-so-high 6, according to the online survey of 1,000 people.
The survey also revealed that there is a link between the perceived likelihood of an event and worry about it. For example, when asked about their concern about the financial consequences of insurable risks, 79% of younger consumers reported being in a car accident that resulted in significant repair or medical costs, but only 35% of respondents indicated that they would likely be in a car accident within the next 10 years.
“It’s clear that young consumers’ perceptions of insurance vary based on their unique level of risk tolerance or aversion, as well as their perception of certain risks,” Ronora Stryker, a senior actuary in practice at the institute, said in a statement.
Other key findings included that 41% of young consumers think it is important to have insurance; 63% of respondents consider themselves risk neutral, while 23% consider themselves more risk averse and 14% consider themselves risk tolerant; and 60% to 80% of younger consumers are “somewhat or very concerned about the financial consequences” of risks, such as car accidents, damage to personal property, or damage to the home.