Young Adults Aren’t So Sure about Insurance

The Society of Actuaries Research Institute just released the results of a survey they did with people aged 21 to 42. Of the 1,000 people surveyed, it turns out most are not so trusting of insurers and insurance.

The survey asked this group to rate their trust of insurance companies on a scale of 1 to 10. Insurance companies got a not so impressive score of 6.

Ronora Strykeris the senior practice research actuary for the society. She noted the disconnect between a perceived likelihood of an event and the concern for such an event. When asked about the financial impact of insurance risks, 79% said they’re concerned about being in an auto accident. However, just 35% thought they’d be in one in the next decade.

“It’s clear that young consumers’ perception of insurance varies based on their unique level of risk tolerance or aversion, as well as their perception of certain risks,” she said.

Here’s more:

  • 41% of the 21 to 42 aged group think it is important to have insurance
  • 63% say they are risk neutral
  • 23% say they’re risk averse
  • 14% are risk tolerant

Oddly enough, and though the level of trust isn’t there, 60% to 80% of young consumers are somewhat or very concerned abut the financial impact of risks like auto accidents, personal property damage or damage to their residence.

Source link: Business Insurance —

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