Improving people’s financial literacy and understanding of insurance will play an important role in underpinning economic growth and in enabling society to overcome the significant pension challenge it faces, according to Insurance Europe, the European insurance and reinsurance federation.
Increasing people’s awareness of financial risks and opportunities from an early age will help them to make informed decisions about which financial services meet their needs. As a result, they are better prepared to engage in economic activity, which in turn helps to drive growth in the European economy. This important issue will be highlighted during the 2016 Global Money Week, an annual global financial awareness campaign for children and young people, which runs from 14-20 March.
Michaela Koller, director general of Insurance Europe, said: “Given the significant economic challenges European society faces, it is very important for people of all ages to be equipped with economic literacy and planning skills to assess their need for financial protection. Education on financial and insurance matters can enable people to make informed financial choices, helping them to live fuller, more prosperous lives, which in turn drives economic growth. Europe’s insurers are committed to continue playing an important role in developing and promoting financial and insurance literacy initiatives at a European level.”
The European insurance industry is already engaged in a broad range of initiatives to increase people’s financial literacy and understanding of insurance, a selection of which can be found on Insurance Europe’s website. A prominent example is the industry’s work to inform people about the need to save for their retirements. Europe’s insurers have developed a variety of initiatives to address this issue, including teaching programmes in schools and in the workplace, as well as applications that allow people to track their pensions.
Koller added: “Raising awareness of the need to save money for retirement can help to take the strain off governments which continue to face a huge challenge in providing for their retired citizens. Given that retired populations are set to grow even larger over time, addressing this challenge now will be fundamental in ensuring stability and prosperity in European society. However, far more needs to be done across the EU by local competent authorities to inform people about the need to save for retirement.”
With increasing people’s understanding of insurance in mind, Insurance Europe has produced a short educational animation to let people know how insurance can help to protect them and their families.
You can find more information Global Money Week here.