Young consumers don’t always trust insurance companies.
That’s one takeaway from 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 no-so-high 6, according to the online survey of 1,000 people.
The survey also revealed there is a disconnect between the perceived likelihood of an event and concern over it. For example, when asked about their concern of the financial impact of insurable risks, 79% of younger consumers reported concern about being in a car accident that results in significant repair or medical costs, but only 35% of respondents cited they are likely to be in a car accident within the next 10 years.
“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,” Ronora Stryker, a senior practice research actuary at the institute, said in a statement.
Other key findings included that 41% of young consumers feel it is important to have insurance; 63% surveyed 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 impact” of risks, such as car accidents, damage to personal property or damage to the residence.
