27 March 2017

Insurance Europe: How to boost financial literacy in a digital age

Financial literacy is a core life skill that must be nurtured as early as possible to encourage responsible financial behaviour and to give people the confidence to take control of their finances. This is the central message of Financial education in a digital age.

The publication makes policy recommendations on how best to boost financial literacy in Europe, so that European citizens are equipped with the knowledge, confidence and skills necessary to improve their understanding of financial products and concepts.

The publication suggests practical steps that can be taken. For example, it calls on the European Commission to promote the adoption of national financial education strategies in EU member states, as well as for the incorporation of financial literacy components into school curricula.

Michaela Koller, director general of Insurance Europe, commented: “One of the main policy challenges is to progress from raising awareness of financial issues to actually changing individual behaviour in terms of keeping track of finances, engaging in longer-term financial planning and choosing products. Integrating financial literacy components into school curricula not only develops financial capability and responsibility from an early age, but also ensures that the widest possible audience is reached.”

The publication calls on all financial education stakeholders to take advantage of increased digitalisation to maximise the impact of their initiatives. It encourages the greater use of digital tools as a means of reaching and engaging with the public on financial education.

The publication also calls on the Commission to consider the cumulative effect of recent EU legislative developments on the volume of pre-contractual information given to consumers and to take steps to remove duplicative requirements where they exist. With many people now buying insurance online, it is also essential that EU legislation is not just technologically neutral but sufficiently future-proof to be fit for the digital age.

The European insurance industry is engaged in a broad range of initiatives to increase people’s financial literacy and their understanding of insurance; these initiatives are showcased in the publication.

Insurance Europe, along with several other financial trade associations, also recently formed the European Platform for Financial Education, which aims to raise awareness about the need for financial education and to boost financial literacy in Europe, particularly among young people and entrepreneurs.

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