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 1
0 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.
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