Increasing Risk Awareness and Education in Insurance Issues

Appropriate training for individuals on risk and insurance issues is tools to enhancing social justice and economic development and social environment. The power to ensure adequate protection for the long-term assets and individual wealth is a key element in promoting social and economic integration. However, failure to meet the need for greater awareness of risk exposure and management of individual responsibility will have the consequences on various degrees for household’s risk. This can be a result of frivolous spending on unnecessary and / or policies of insurance accumulation of financial exclusion.

The profits of better education and highly varied across the population characteristics, make their risk exposure and dependent on the level of development and the role of insurance markets and national regulatory frameworks and oversight.

The level of exposure to certain risks, combine with access to insurance education to reduce exposure to certain risks, and access to education to insurance, knowledge and understanding are different. In general, the most disadvantaged and / or vulnerable populations (eg low income, immigrants, the oldest and youngest members of society, the unemployed and women.) are those most in need of protection from a wide range of social and economic risks.

This population group is particularly vulnerable, as the industrial and natural disasters (including terrorism), risk-prone areas should be aware of the risks and control measures and coverage options - including micro-assurance tools - the most to reduce risks and vulnerabilities of the coverage and exposure. Governments must also address a direct interest in research to better meet the needs of households more aware of the risks and responsibilities of insurance.

In return, the absence of proper understanding of insurance policy and products, potentially creates some risks and const for the operational, financial and prudential nature of insurance. It will further strengthen their basic knowledge and understanding of insurance products to address the market is theoretically less competitive because consumers are less inclined to compare products and choose the most appropriate for their situation. Finally, it can cause the cost of regulation as market failure, such as mis-selling, which are insured and dissatisfied customers to stay closer to not cover the regulation and supervision.

However, if consumers are properly informed and aware of the risks and responsibility for their coverage they have chosen the reserve measures, the insurance will be more transparent, competitive and healthy. The education can not replace the prudential regulation and supervision of consumers, increased consumer awareness and issues of liability insurance the way to develop a more flexible regulatory framework that will allow opening more management flexibility to better respond to the particularities of any appropriate insurance.