Individual Insurance Risk Propensity and Non-Mandatory Insurance Products Purchases: Evidence from Italy

Based on a representative sample of Italian adults, this study aims to investigate the socio-demographic and socio-economic characteristics and the\r\nlevel of insurance knowledge influencing individual insurance risk propensity. Furthermore, it tests whether these factors influence the purchase of\r\nthree non-mandatory insurance products, one comprising non-life insurance and for two life insurance. The obtained results demonstrate that there is\r\nno perfect relationship between determinants of individual insurance risk propensity and non-mandatory insurance product purchases. Specifically,\r\nthe purchaser’s level of insurance knowledge does not influence insurance risk propensity but does influence the purchase of non-mandatory insurance\r\nproducts. This paper adds to the literature on the topic considering non-mandatory insurance products, studies being very rare, especially with reference\r\nto non-life insurance products. These results may assist policymakers and institutions in identifying areas of intervention and appropriate communication\r\nlevers to direct attention toward the voluntary purchase of insurance products.