Identifying insurance literacy knowledge gaps across the insurance product lifecycle: a qualitative thematic analysis

Purpose This paper aims to identify and analyse insurance literacy knowledge gaps by adopting an insurance product lifecycle perspective. Design/methodology/approach A qualitative thematic analysis was conducted on 166 recommended solutions issued by the Finnish Financial Ombudsman Bureau (FINE) between 2022 and 2024. Cases were analysed to identify recurring misconceptions related to risk assessment, insurance principles and product terms, as well as rights and responsibilities and information acquisition. Findings Limited insurance literacy led consumers to misjudge relevant risks, form unrealistic expectations of coverage and engage inadequately with policy terms at various stages of the insurance lifecycle, from product selection to claims handling. These gaps highlight consumers’ difficulty in interpreting information and translating it into informed economic behaviour in a comprehensive manner. Originality/value This paper advances the literature by conceptualising insurance literacy as a dynamic, lifecycle-wide capability. Using alternative dispute resolution cases, it demonstrates how literacy shapes expectations, interpretations and outcomes. The findings indicate that while regulatory frameworks are essential, they alone are insufficient to eliminate persistent gaps in consumer understanding. Effective consumer protection arises from the interaction between supply-side rules and consumers’ evolving decision-making capacities.