THE IMPACT OF FINANCIAL LITERACY ON THE DEMAND FOR REAL ESTATE INSURANCE IN LATVIA
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Abstract
The studies published between 2018 and 2023 extensively investigate the impact of different factors on the decision to purchase real estate insurance. Only a small number of these studies examine the effects of financial literacy on the demand for property insurance. This paper aims to explain the impact of financial literacy on the demand for real estate insurance and to identify measures that can be taken to develop financial literacy to boost the demand for real estate insurance services in Latvia. The paper hypothesizes that developed financial literacy has a positive impact on the demand for real estate insurance. To achieve the aim of the article and to test the hypothesis, several tasks have been set: to describe the development trends of the real estate insurance market in Latvia to conduct a survey of policyholders' individuals on real estate insurance services in Latvia; to conduct interviews with real estate insurance specialists. The article applies qualitative (monographic method) and quantitative (structured survey of respondents, descriptive statistics, ANOVA test, dynamics, and structure indicators) research methods. The novelty of this article lies in the fact that the impact of financial literacy on the demand for real estate insurance services in Latvia is investigated. The impact of financial literacy on the demand for real estate insurance has not been widely studied in Latvia or other countries of the world. Individual-level factors influencing the decision to purchase real estate insurance, such as property type, property risk exposure, property value, access to finance, mortgage credit, risk perception, previous risk experience, and savings, have been extensively studied. The study concludes that financial literacy is a factor influencing the overall demand for property insurance in Latvia.
How to Cite
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financial literacy, demand for property insurance, non-life insurance
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