Martyn Mathews, MD at SSP Broker, offers some insights on the urgency to bring insurance into the classroom.
For decades, the UK has been moving towards a more financially literate society. Young people today are far more likely to be taught about budgeting, debt management, and even the basics of investing than previous generations. But one critical component appears to be absent from most schoolrooms: insurance.
This omission makes a difference. Insurance is not an optional extra in adult life, it’s a central pillar of financial resilience. Our recent research of 1,000 12–16-year-olds highlights the gap starkly, only 18% have learned about insurance in school. Nearly 15% have never encountered the topic at all. Instead, most turn to family, social media, or internet searches for answers. While these sources can be useful, they risk being incomplete, biased, or simply wrong.
Why It Matters
If insurance isn’t taught in schools, young people may be left unprepared for some of the most important financial decisions they will make. Whether it’s understanding that car insurance is a legal requirement, choosing the right type of home insurance, or assessing travel or cyber protection, making young people familiar with insurance can help to remove distrust and the risk of poor buying decisions.
The survey uncovered some striking misconceptions. 41% believe home insurance is mandatory and 32% think the same about health insurance in the UK. Taking a punt at the cost of motor insurance for an 18 year old new driver, most missed the mark, underestimating the average annual premium (currently around £2,329) suggesting they are not prepared for the real costs they’ll face. Without awareness, young people risk financial shocks just as they are starting their working lives.
If large numbers of new adults enter the market with little understanding of insurance, we will see lower levels of cover, higher levels of underinsurance, and a rise in disputes or dissatisfaction. Let’s not forget that the UK has been seeing increasing numbers of uninsured young drivers. This all serves to erode trust in the industry and weakens financial resilience across society.
An Opportunity in Disguise
The same survey revealed some surprising results as 69% of 12–16-year-olds said they would consider working in insurance. This is remarkable for a sector often described as “invisible” to the public. Young people are curious, open, and ready to learn. They just need exposure.
Insurance education in schools could nurture this interest into a talent pipeline that is diverse, tech-savvy, and socially conscious. This isn’t just about building better customers, it’s about securing the future of our industry.
How We Integrate Insurance into Financial Literacy
The case for including insurance in the national curriculum is strong. Lessons could be tied to relatable life milestones:
· Learning to drive → understanding motor cover, premiums, and telematics.
· Renting a flat → contents insurance, landlord obligations, and liability.
· Travelling abroad → travel insurance, medical cover, and cancellation policies.
We should teach the difference between mandatory and optional cover, how policies are priced, and what happens when you make a claim. Case studies and role-play scenarios could make the concepts tangible.
Industry’s Role
The insurance sector must be an active partner in this effort. That means funding lesson materials, visiting schools, hosting career days, and producing youth-friendly explainer content online.
We can also work with AI platforms to ensure that when young people turn to digital assistants for answers, they get accurate and age-appropriate information.
A Call to Action
Financial literacy without insurance is like teaching someone to drive without mentioning the Highway Code. You might cover the basics, but you’ve left them dangerously unprepared.
We have the data. We have the interest. And we have the means to close this gap. What’s needed now is coordinated action between educators, policymakers and the insurance market.
If we want a generation of adults who are not only able to budget and save but also to protect what they have, then we must start teaching the protection side of the equation today. Insurance literacy isn’t just an educational priority—it’s a societal necessity.
Check out the SSP Broker white paper ‘Insurance Uncovered’.
Be the first to comment