ABZ Survey "Attitudes towards insurance and insurance literacy (2020)

The survey of ABZ "Attitudes towards insurance and insurance literacy (2020) was conducted" among 1000 people across the country aged 18-65. Its purpose is to examine the attitudes of Bulgarians towards insurance, familiarity with and use of insurance products, consumer behavior and the level of insurance literacy. Such a study, in terms of subject matter and scale, has not been conducted so far in the country. The study consists of two main parts. The first part examines topics such as value system, level of trust in the sector, familiarity with and use of insurance products, consumer motivation to choose and buy, information channels, problems related to the use of insurance, sustainable beliefs / attitudes about insurance and others. The second part, a test to measure basic knowledge in the field of insurance.

The reading of the results outlines several main trends and directions of consumer attitudes. There is an increase in confidence in the insurance sector, as well as a relatively high level of understanding of the benefits of insurance. But at the same time, there are persistent negative beliefs about insurance that do not realistically reflect the practical experience of consumers. There are also deficits in informed consumer choice, which suggest the need for more active educational action in this direction.

There is a clear direct correlation between insurance literacy, the use of insurance products and trust in the sector.

The social groups that achieve high results in the insurance literacy test (part 2 of the survey) also demonstrate high levels of trust in the sector and companies, using insurance products to the highest degree. The opposite is also true. As expected, the groups of people with higher education, high income, high professional positions have the best "achievements". These groups are less likely to base their assessments on negative sustainable beliefs and more on real experience.

One of the purposes of the study is to provide objective information about the level of insurance knowledge of Bulgarians. A series of questions establishes the familiarity with basic concepts and basic products in insurance. The results generally confirm that insurance literacy is unsatisfactory, with sharp differences between different social groups. On average, for all questions, the correct answers are 53%. There are particularly significant differences in the level of the "level of education" indicator, as well as "personal income" and "social status / occupation". For example, the share of average correct answers in people with higher / semi-higher education is 65%, and that in people with primary / lower - 29%. In the last group the share of the given answers "I don't know / I can't judge" is especially indicative - as much as 46%. Another group that demonstrates low insurance knowledge is that of young people - 18-24 years, and some of the reasons are probably the lack of life and practical experience, as well as the lack of training in financial matters.

Overall, the data show that there is a significant degree of misunderstanding and low awareness of insurance and insurance products, especially among some social groups. This is also a barrier to the higher level of use of insurance services, to the informed choice and the related consumer satisfaction.

The full text of ABZ Analysis "Survey of Attitudes to Insurance and Insurance Literacy in Bulgaria" (2020) is at your disposal in the attached file in pdf format.