Closing the Trust Gap: How Early Insurance Education Builds a Stronger Market

Trust is the bedrock of the insurance industry. Without it, no policy wording, premium rate, or claims process will matter. Despite this, many people’s first interaction with insurance is when something has gone wrong like a claim dispute, a rejected payout, or an unexpected premium rise. By the time they encounter the product directly, their perception may already be tainted.

Our research with 1,000 young people aged 12–16i reveals how early these perceptions start to form. Only 18% have learned about insurance in school. Nearly three-quarters turn to family members for answers; 40% cite social media as a key source of information. Both can be valuable but also risk being limited or potentially biased. Read the full report here: https://ssp-worldwide.com/insurance-uncovered

It’s not surprising then, that misconceptions abound. More than half of respondents believe someone in their household has made an insurance claim, far above actual market experience. This suggests that anecdotal claims stories, accurate or not, are shaping their entire understanding of the industry.

The Danger of Misinformation

When young people’s knowledge is built on second-hand stories or sensationalist social media posts, their trust in insurance is undermined before they’ve even entered the market. If all they hear is “insurance companies try to wriggle out of paying,” then they’ll approach adulthood suspicious of insurers’ motives.

Misinformation not only risks reputational issues it can lead to young people making poor choices when buying insurance because they misunderstand what’s excluded, or they underinsure themselves. These mistakes can be costly and can further erode trust.

Why Education Builds Trust

By teaching the basics of insurance in the classroom, we can explain how policies work, how prices are set, and what to happens in a claim. In this way we can build transparency and familiarity around insurance. For example, if we explain why car insurance premiums for young drivers are higher, they’re more likely to see pricing as fair. If they walk through a claims process in class, they’ll understand what information they need to provide and why certain conditions exist.

Education can help equip future customers and employees with the context they need to judge fairly.

Meeting the Next Generation Where They Are

The next generation are digital natives. They’re more likely to watch a 90-second explainer on TikTok than read a leaflet. If the industry wants to reach them, we need to create genuinely engaging content:

· Short-form videos that break down cover types.

· Interactive quizzes to test their knowledge of mandatory insurance.

· Gamified “price a policy” challenges to explain risk-based pricing.

Importantly, this content must be unbiased and informative, not thinly veiled advertising. When young people sense a sales pitch, they switch off.

We also have an opportunity to integrate accurate information into AI tools and search engines. If 31% of teenagers already use AI platforms for insurance questions, the industry should ensure these tools return clear, correct, and easy-to-understand answers.

Using Curiosity to Build Credibility

One encouraging sign from the survey is that young people are thinking about future risks. Almost half believe cyber insurance will be necessary in 20 years; more than a third expect AI-related cover. This shows an openness to learning about emerging risks, a perfect entry point for conversations about how insurance evolves to meet new challenges.

By engaging with these topics early, we can position insurance as forward-looking and essential. Imagine a classroom debate on whether driverless car insurance should cover the manufacturer, the owner, or the software developer. It’s educational, relevant, and positions insurance as part of solving tomorrow’s problems.

A Shared Responsibility

Rebuilding and maintaining trust can’t be left to insurers alone. It requires collaboration between educators, policymakers and most of all – those of us working in the market. Together, we can:

· Create curriculum-aligned materials that are easy for teachers to deliver.

· Offer school visits, career talks, and virtual internships to humanise the sector.

· Build a public library of youth-friendly digital resources, freely accessible to all.

The Long-Term Benefit

A generation that understands insurance from the classroom and direct engagement from the marker is surely more likely to feel confident when buying cover and making a claim. They may even come to view insurers as allies rather than adversaries. This isn’t just good for the market — it’s good for society. Higher take-up of cover means greater resilience to financial shocks, fewer uninsured losses, and more stable communities.

By investing in insurance education now, we can prevent misconceptions from taking root, build customer confidence, and secure a stronger, healthier market for the future.

Watch out for our webinar with the CII on this issues covered in this article, taking place on 4th November 2025 at 11am.

i The research was conducted by Censuswide, among a sample of 1,000 12-16 year olds in the UK. The data was collected between 16.06.2025 - 19.06.2025. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.