Consumers' Understanding and Awareness of Insurance

Consumers

This report provides a detailed analysis based on two axes: Age group (20s–60s) and self-perception type—of insurance terminology and product understanding, self-perception types at the time of enrollment, interest in the revised Insurance Business Act, perceived burden of the Act, product selection behavior, current trust in the insurance industry, and access to information. The report offers insights that insurance companies and insurance agencies can use to improve the quality of their sales efforts and develop communication strategies.

I. Online Questionnaire: Analysis

1. Insurance Industry Environment
   　　1.1. A Series of Recent Scandals Occurred in the Insurance Industry
   　　　　1.1.1. "Big Motor" Issue
   　　　　1.1.2. Cartel Operation for Business Insurance Among Nonlife Insurance
                                  Companies
   　　　　1.1.3. Customer Data Breach Incidents
2. The Amended Insurance Business Act and Efforts to Review Sales Practices
   　　2.1. Background of the Enactment and Enforcement of the Amended Insurance
                     Business Act
   　　2.2. Four Key Points of the Amended Insurance Business Act
   　　2.3. Conducting a Consumer Survey in Light of Changes in the Insurance Sales
                     Environment
3. Hypotheses Formulated During the Design of This Survey
   　　Hypothesis 1: There is a gap between "thinking one knows" and "actual
                                         understanding."
   　　Hypothesis 2: Understanding may not be sufficiently solidified even after going
                                         through the sales process.
   　　Hypothesis 3: Online-only insurance products are prone to comprehension issues.
   　　Hypothesis 4: The lower a consumer’s level of understanding, the lower their
                                         interest in industry topics.
   　　Hypothesis 5: Barriers exist to awareness of and access to glossary pages, as well
                                         as an "I thought I looked it up" mindset.
   　　Hypothesis 6: Consumers seek recommendations rather than making comparisons
                                         on their own.
   　　Hypothesis 7: Insurance companies’ disclosure of information is not being fully
                                          utilized.
4. Summary of Analysis Results and Recommendations
   　　4.1. Summary of Survey Results
   　　4.2. Recommendations
5. Survey Overview
   　　5.1. Survey Objectives
   　　5.2. Survey Guidelines
   　　5.3. List of Questions
   　　5.4. Respondent Profiles
   　　　　5.4.1. Gender
   　　　　5.4.2. Age
   　　　　5.4.3. Occupation
6. Findings from the Survey:
   　　6.1. Characteristics of Insurance Understanding Revealed by Types of Mistakes
   　　6.2. A Generation Gap in Insurance Knowledge
   　　6.3. Two Challenges that Younger Generations Face
   　　6.4. Three Reasons Why Consumers' Understanding of Insurance Not Deepen
7. The True Nature of the Misunderstanding of "I Understand It"
8. Awareness of the Amended Insurance Business Law
9. The Consumer Mindset
10. Information Disclosure Reach

II. Online Questionnaire: Aggregated Data

• Q1. Gender
• Q2. Age
• Q3. Occupation
• Q4. Types of Insurance Held
• Q5. Categories of Insurance Held
• Q6. Type of Insurance Policy
• Q7. Level of Understanding of Term Life Insurance
• Q8. Level of Understanding of Whole Life Insurance
• Q9. Level of Understanding of Endowment Insurance
• Q10. Level of Understanding of Income Protection Insurance
• Q11. Level of Understanding of Individual Annuity Insurance
• Q12. Level of Understanding of Education Savings Insurance
• Q13. Level of Understanding of Auto Insurance
• Q14. Level of Understanding of Earthquake Insurance
• Q15. Level of Understanding of Personal Liability Insurance
• Q16. Understanding of the Insured
• Q17. Understanding of Rider Provisions
• Q18. Understanding of Surrender Value
• Q19. Understanding of Dividends
• Q20. Understanding of the Duty to Disclose
• Q21. Understanding of the Effective Date of Coverage
• Q22. Understanding of the Rating System
• Q23. Understanding of Deductibles
• Q24. Understanding of Advanced Medical Care Rider
• Q25. Understanding of Disability Income Insurance
• Q26. Understanding of Mutual Aid Programs
• Q27. Awareness of the Revised Insurance Business Act
• Q28_1. Perceived Burden of Time Spent Confirming Intentions
• Q28_2. Perceived Burden of Frequency of Confirming Understanding
• Q28_3. Perceived Burden of Time Spent Explaining Reasons for Recommendations
• Q28_4. Perceived Burden of Filling Out and Signing Documents
• Q28_5. Perceived Burden of Comparing and Selecting Products
• Q28_6. Perceived Burden of Contract Confirmation Procedures
• Q28_7. Perceived Burden of Dealing with Multiple Representatives
• Q29. Awareness of Media Reports on Insurance Industry Scandals
• Q30. Change in Impression Due to Media Reports on Scandals
• Q31. Impression of the Insurance Industry
• Q32. Experience Reviewing Disclosure Materials
• Q33. Factors Determining an Insurance Company’s Credibility
• Q34. Level of Understanding of Explanations Provided by Insurance Representatives
• Q35. Experience of Hesitating to Purchase a Policy Due to Difficulty Understanding Insurance Terminology
• Q36. Intentions Regarding the Selection of Insurance Products
• Q37. How to Handle Situations Where Insurance Terminology Is Unclear
• Q38. Reasons for Hesitation in Purchasing Online-Only Insurance Policies