Choosing Insurance
From Open Risk Manual
Definition
Choosing Insurance. In the context of the Financial Competence Framework, Choosing Insurance is a topic in the Risk And Reward subject matter domain.[1]
Competences
Mastering the role of Choosing Insurance in financial literacy context requires the following competences:
| Code | Competency Description | Competency Type |
|---|---|---|
| 378 | Understands when financial risks can be more appropriately managed with or without insurance | Knowledge |
| 379 | Aware of the risk of being underinsured and costs of being overinsured | Knowledge |
| 380 | Knows when insurance is a legal obligation | Knowledge |
| 381 | Knows which insurance products are designed for which situations | Knowledge |
| 382 | Knows the difference between life and non-life insurance | Knowledge |
| 383 | Aware that insurance offers and insurance premia may be based partly on certain personal information that is processed via big data and other data analytics | Knowledge |
| 384 | Considers the benefits of insurance when risks have been identified | Skill |
| 385 | Uses appropriate insurance products | Skill |
| 386 | Periodically checks that the insurance held is still providing adequate cover | Skill |
| 387 | Claims on the appropriate insurance if necessary | Skill |
| 388 | Takes steps to insure against low probability high cost events | Skill |
| 389 | Takes into account the way in which certain actions and behaviours will impact on insurance coverage and insurance premia (including actions monitored through big data, where relevant) | Skill |
References
- ↑ European Union/OECD (2022), Financial competence framework for adults in the European Union
