An Empirical Study on the Determinants of Insurance Literacy among Korean College Students

Abstract As consumers increasingly assume greater responsibility and risk in choosing diverse and complex insurance products, the importance of insurance literacy is growing. While existing research has focused on the relationship between financial competency and financial knowledge, attitudes, behavior, and financial consumer protection, research on the impact and structure of financial education precursors to financial literacy is scarce, particularly in the area of insurance. This study developed and analyzed a survey of approximately 900 undergraduate students majoring in insurance studies at universities in Korea to examine the factors that determine the relative effectiveness of risk management and insurance education. The study examined relationships between faculty and students, and between the environment and faculty, and analyzed the influence of teaching behaviors on subcategories of educational effectiveness including students’ attitude, knowledge, and behavior. Results confirmed that student characteristics, faculty characteristics, and characteristics of the educational environment impact the effectiveness of risk management and insurance education. Specific findings demonstrate the importance of teaching behaviors and educational environments that promote students’ efficacy and motivation as key factors in enhancing educational effectiveness in risk management and insurance.