Call for schools to boost UK teens’ insurance literacy levels

A new white paper from SSP Broker has highlighted that only 18% of young people in the UK have learned about insurance at school, exposing a gap in financial literacy among teenagers preparing for adulthood.

The report, titled Insurance Uncovered: Why Financial Literacy Must Include Insurance Education for the Next Generation, is based on a national survey of 1,000 children aged 12 to 16. The findings indicate that the majority of UK teens have little formal understanding of insurance and rely more on informal sources such as family, television, and social media for information.

According to the survey, 75% of respondents said they would seek advice about insurance from their families rather than from professional sources. Only 26% said they would consider approaching an insurer or a broker. Among the surveyed teenagers, 15% reported that they have not learned anything about insurance at all in their schooling.

Industry perspectives

"We're handing young people the keys to financial adulthood without explaining how to steer," said Martyn Mathews, Managing Director of SSP Broker. "This isn't just an education gap, it's a risk to their financial futures and to the trust in our industry."

The report incorporates commentary from the Chartered Insurance Institute (CII), the British Insurance Brokers' Association (BIBA), and Futures For All, reflecting a broad concern within the sector about the level of insurance awareness among young people.

Survey data reveal common misconceptions. Over 30% of teenagers believe that health insurance is mandatory in the UK, when in reality, it is not. Furthermore, more than half of those surveyed think that someone in their household has made an insurance claim, double the rate seen in official industry statistics. This suggests a lack of clarity about the workings and requirements of insurance products.

Career opportunities

Despite limited understanding, the survey found that 69% of teenagers might consider a career in insurance. The report identifies this as an opportunity for the sector to engage with a new generation of potential employees, particularly as the industry becomes more data-driven and focused on technology.

"We all benefit by increasing educational efforts around insurance and sharing the message that insurance is big data personified," added Mathews. "The industry will be fueled with a generation of new ideas, young people are given a new avenue of employment, and the products on offer will better suit new waves of consumers."

Recommendations

SSP Broker's white paper outlines several recommendations to improve insurance education and literacy among young people in the UK. These include incorporating insurance topics into the national curriculum - especially at key milestones such as when learning to drive - and developing partnerships between insurers, educators, and policymakers to produce materials for schools.

Other recommendations involve creating digital content targeted at platforms popular with teenagers, such as TikTok, Instagram, and YouTube. The industry is also encouraged to expand career outreach through school talks, internships, and providing digital resources such as "day-in-the-life" videos from insurance professionals.

Laura Wharfe, ACII Chartered Insurer and Career & Talent Lead at the CII, emphasized the broader value of insurance education, stating:

"At the Chartered Insurance Institute, we firmly believe that insurance education should not just be about understanding policies - its about equipping young people with the knowledge to protect what matters most and to see the substantial role our profession plays in society. This research shows both the urgency and the opportunity, by embedding insurance into financial education and ensuring the sector is promoted more visibly in schools as a career of choice and one that offers a fulfilling professional pathway. By working together to deliver this, we can build financial resilience amongst young people whilst strengthening public trust and inspiring a new generation of professionals to join a sector that truly makes a difference."

Further action

The paper also proposes organising a national roundtable event, piloting insurance education programmes in schools, and establishing an annual Insurance Literacy Tracker to monitor progress across the UK.

SSP Broker is calling for greater collaboration across government and industry stakeholders to address the knowledge gap and ensure that future generations have the tools required to navigate financial risks and make informed decisions.