Abstract:

Risks are an integral part of individual and societal decision-making and influence economic behavior across almost all areas of life. In modern societies, which are increasingly characterized by complex and uncertain environments, the ability to identify, assess, and manage risks is becoming increasingly important. This skill is commonly referred to as risk literacy and represents a central component of financial literacy. Insurance plays a particularly important role in individual risk management, as it enables the transfer of risks and provides protection against potentially existential financial losses. Despite the relevance of this topic, empirical research on financial literacy has only rarely examined how individuals understand risks and how they manage risk-related situations and insurance.

Against this background, the present paper examines the risk literacy of Austrian adults by using a qualitative research design. Semi-structured interviews were conducted with participants aged between 25 and 64 years in order to explore their understanding of risk, and their strategies for dealing with it, with particular attention to the role of insurance. The qualitative approach allows for an in-depth analysis of perceptions and experiences and enables the identification of different perspectives on risk-related decision-making.

The results indicate that the concept of risk is predominantly perceived in a negative manner and is mainly associated with danger, uncertainty, and potential loss, whereas positive aspects such as opportunities are mentioned less frequently. Decision-making in risky situations appears to follow a rather cautious and loss-oriented logic, and the evaluation of risks is mostly context-dependent. Insurance is often perceived as complex and difficult to understand, which leads to uncertainty and a strong dependence on external advice. Regarding sources of information, the findings indicate that knowledge about risk and insurance is mainly acquired through personal networks, the internet, and insurance agents or brokers, while most participants did not receive formal education on these topics. However, almost all interviewees expressed a strong desire for these contents to be incorporated into school curricula.

The paper contributes to the field of financial education by providing empirical insights into how Austrian adults perceive and manage risks and insurance. Based on these findings, implications for education are discussed, particularly regarding the need for an earlier and more systematic integration of risk- and insurance-related topics into school curricula, as well as the development of clear, independent, and practice-oriented educational approaches.

Keywords:

Risk literacy, insurance, financial literacy, financial education, school curriculum, qualitative research.