Individual Insurance Risk Propensity and Non-Mandatory Insurance Products Purchases: Evidence from Italy

Based on a representative sample of Italian adults, this study aims to investigate the socio-demographic and socio-economic characteristics and the level of insurance knowledge influencing individual insurance risk propensity. Furthermore, it tests whether these factors influence the purchase of three non-mandatory insurance products, one comprising non-life insurance and for two life insurance. The obtained results demonstrate that there is no perfect relationship between determinants of individual insurance risk propensity and non-mandatory insurance product purchases. Specifically, the purchaser’s level of insurance knowledge does not influence insurance risk propensity but does influence the purchase of non-mandatory insurance products. This paper adds to the literature on the topic considering non-mandatory insurance products, studies being very rare, especially with reference to non-life insurance products. These results may assist policymakers and institutions in identifying areas of intervention and appropriate communication levers to direct attention toward the voluntary purchase of insurance products.

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Publication Details

Journal
International Journal of Economics and Financial Issues
Published
2025-08-25
DOI
https://doi.org/10.32479/ijefi.19422
Primary Topic
Insurance and Financial Risk Management
Type
article
Field-Weighted Citation Impact
0.00
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article

Individual Insurance Risk Propensity and Non-Mandatory Insurance Products Purchases: Evidence from Italy

Andrea Lippi
International Journal of Economics and Financial Issues
Insurance and Financial Risk Management
article

Individual Insurance Risk Propensity and Non-Mandatory Insurance Products Purchases: Evidence from Italy

Andrea Lippi
article en

Abstract

Based on a representative sample of Italian adults, this study aims to investigate the socio-demographic and socio-economic characteristics and the level of insurance knowledge influencing individual insurance risk propensity. Furthermore, it tests whether these factors influence the purchase of three non-mandatory insurance products, one comprising non-life insurance and for two life insurance. The obtained results demonstrate that there is no perfect relationship between determinants of individual insurance risk propensity and non-mandatory insurance product purchases. Specifically, the purchaser’s level of insurance knowledge does not influence insurance risk propensity but does influence the purchase of non-mandatory insurance products. This paper adds to the literature on the topic considering non-mandatory insurance products, studies being very rare, especially with reference to non-life insurance products. These results may assist policymakers and institutions in identifying areas of intervention and appropriate communication levers to direct attention toward the voluntary purchase of insurance products.

International Journal of Economics and Financial IssuesVol. 15(5)
Università Cattolica del Sacro Cuore (IT), University of the Sacred Heart (JP)
Openalex Percentile: Top 70%
Insurance and Financial Risk Management
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