THE ROLE OF FINANCIAL EDUCATION IN DEVELOPING A RISK MANAGEMENT CULTURE AND INCREASING PARTICIPATION IN INSURANCE
Keywords:
Financial education, risk management culture, insurance participation, consumer behavior, financial literacyAbstract
Financial education plays a fundamental role in strengthening individuals’ ability to understand and manage financial risks, which directly influences their decisions regarding insurance products. Despite the insurance sector’s importance in providing financial protection and stability, participation in insurance schemes remains low in many regions due to limited financial literacy, misconceptions about insurance, and weak risk awareness. This study examines the impact of financial education on the development of a proactive risk management culture and its contribution to increasing engagement with insurance products. Through a theoretical and analytical approach, the research explores how financial knowledge shapes consumer perceptions, improves decision making, and enhances trust in insurance services. The findings highlight that higher levels of financial literacy lead to better identification, assessment, and management of risks, resulting in greater demand for insurance coverage. The study emphasizes the need for coordinated efforts between educational institutions, insurance companies, and regulatory bodies to promote financial education as a strategic tool for expanding insurance inclusion and improving overall market stability.
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