Financial education activities of the European insurance industry

Financial education activities of the European insurance industry Arthur Hilliard Insurance Europe Budapest, 22 November 2018

Insurance Europe Who? European insurance and reinsurance federation, founded in 1953 What? Represents around 95% of European insurance market by premium income Why? Committed to creation of favourable regulatory and supervisory framework for insurers at European and international level. 2

Members 35 national associations 27 EU member states 5 non-EU markets Switzerland, Iceland, Norway, Turkey, Liechtenstein 2 associate members Serbia, San Marino 1 partner Russia 3

Contribution to the economy Insurance Europe represents around 3 400 European (re)insurers, which: generate premium income of more than € 1 200 bn directly employ over 950 000 people invest over € 10 100 bn in the economy 4

Financial education and awareness

Why is it important? Helps provide individuals with the knowledge, confidence and skills necessary to improve their understanding of financial products and concepts Core life skill that needs to be developed and nurtured as early as possible to encourage responsible financial behaviour and to give people the confidence to take control of their finances Increased awareness of financial risks and opportunities helps people to make informed decisions, making them better prepared to engage in economic activity, which in turn helps to drive growth in the European and global economy 6

The importance of insurance From an economic perspective, insurance provides people and businesses with financial protection, so that when something bad happens they can maintain a certain standard of living and avoid burdening public finances Important to ensure that as many people and businesses as possible are able to take out suitable insurance cover Two key insurance issues: How to ensure an adequate level of insurance cover? (Risk awareness) How to best make provision for retirement? (Pensions education) 7

The importance of insurance Risk awareness Many consumers have low level of awareness of risks they face and lack requisite knowledge of insurance products and coverage Important to ensure awareness vis-à-vis potential risks to which individuals are exposed and means by which insurance can best cover those risks National associations raise awareness of dangers of insufficient insurance coverage among vulnerable groups in society (eg natural disasters, serious illness), as well as new and emerging risks, and possibility of being covered against such risks 8

The importance of insurance Pensions Current financial climate has heightened public anxiety about pensions and importance of making provision for retirement Demographic challenge of ageing societies makes it even more important for inividuals to be prepared for financial risks and to have a good retirement plan Finnacial education allows individuals to be properly equipped with the literacy skills necessary to adequately assess their need for financial and social protection, and make informed decisions on saving for retirement 9

Insurance Europe activities

Insure Wisely campaign January 2018: Launched new financial education campaign “Insure. Wisely”, including online financial education portal and new year’s resolutions one-pager Online portal focuses on why financial education is important and what insurance industry is doing Part of wider strategy on consumer protection and targeted at wide range of stakeholders 11

Insure Wisely campaign Publication of infographics New Year’s resolutions Travel insurance Motor insurance What to do if you have a road accident abroad 12

Insure Wisely campaign #Insure. Wisely quiz: Global Money Week, 12 -18 March 2018 Launched online financial education quiz targeted at a wide range of stakeholders, including policymakers, journalists, social media and general public Allowed them to test their level of financial education and knowledge of insurance with 12 (simple? ) questions May 2018: Break-out session on financial education at Insurance Europe’s 10 th International Conference in Madrid 13

Insure Wisely campaign 14

Insure Wisely campaign Campaign demonstrates Insurance Europe’s commitment to financial education and highlights the national initiatives undertaken by its members Positive reaction to campaign by other stakeholders, press and on social media Several Insurance Europe members have used campaign material in their own markets 15

Publications How insurance works Financial education in a digital age — initiatives by the European insurance industry Insurance Europe policy recommendations on financial education Insure. Wisely infographics 16

Financial education in a digital age Initiatives by the European insurance industry In March 2017, Insurance Europe launched a publication showcasing some of the many initiatives its member associations undertake Publication also makes policy recommendations on how best to boost financial literacy in Europe Encourages greater use of digital tools as a means of reaching and engaging with public on financial education 17

Financial education in a digital age Teaching and training Schools Educational games Awareness-raising Campaigns Brochures Digital channels 18

Financial education in a digital age Teaching and training: Schools Finland: “Zaldo” 19

Financial education in a digital age Teaching and training: Schools Italy: "Io & i rischi" (Me & Risks) 20

Financial education in a digital age Teaching and training: Schools Iceland: “Fjármálavit“ (financial knowledge) 21

Financial education in a digital age Teaching and training: Educational games Austria: “Less risk – more fun” 22

Financial education in a digital age Teaching and training: Educational games Netherlands: “Fix je Risk” 23

Financial education in a digital age Teaching and training: Educational games Portugal: “Seguros e Cidadania” 24

Financial education in a digital age Awareness-raising Campaigns Brochures Germany Austria Greece Croatia Spain Czech Republic Hungary 25

Financial education in a digital age Focus on digital tools Technology-based tools can contribute to raising financial literacy levels and help overcome some of the barriers to financial education: Potential to reach a wider section of the public Faster and more convenient to access information As technology develops further, range of interactive online tools will continue to grow, prompting new and innovative ways of engaging the public on financial education 26

Financial education in a digital age Policy recommendations (I) Integrate financial literacy components into school curricula Develop national strategies for financial education European Commission Recommendation on financial education European Commission promotion of pension tracking services European Day of Financial Education 27

Financial education in a digital age Policy recommendations (II) Better information, not more information, for consumers 28

Financial education in a digital age Policy recommendations (III) Greater responsibility for EIOPA Increase the use of digital tools for financial education Increase interactive learning 29

Other Insurance Europe activities European Platform for Financial Education Global Money Week 30

Feedback on industry initiatives What has the reaction been? Feedback received by Insurance Europe on awareness-raising activities has been very positive “Teaching the teachers” effect Most common reaction is that seeing the initiatives/materials used in other countries has provided a great source of new ideas and examples for initiatives that could be reproduced in their own market Insurance Europe is actively continuing its work in this area, based on the encouraging feedback received 31

For more information www. insuranceeurope. eu/insurewisely Twitter: @Insurance. Europe #Insure. Wisely