Getting Personal about Personal Insurance

This article reports research into an area of insurance, personal insurance. This is important as some research suggests that insurance literacy could be related to the level of insurance purchased. To consider this potential relationship this article reports a detailed analysis of interviews with consumers and financial advisers in Australia about their consideration of personal insurance products. The findings reveal financial advisers consider that consumers have very low levels of insurance literacy, which they believe is linked to underinsurance. Consumers demonstrated low levels of personal insurance literacy, with trauma insurance being the least understood, and this may lead to strategies to improve insurance literacy and address concerns about under- or over-insurance.