MPI Brokers, a specialist ski and travel insurer based in the UK, has said that a basic understanding of insurance should be taught to school leavers.
The company said that young people reaching the end of their schooling should be taught basic insurance skills in subjects that may immediately affect them. For instance, students should be informed about motor insurance to help with their first vehicles, travel insurance in case they are planning on travelling or insuring their possessions if they are heading off to university.
A recent survey by the Association of British Travel Agents found that 40 per cent of 18 to 24 year-olds went abroad without insurance, something which MPI says is because they have no understanding of it.
“Few of them appreciate the importance of travel insurance or the possible financial burden they might face without it,” said the company. “At school gap fairs we talk to a lot of intending gap year travellers and seasonaires and find that a large percentage are completely ignorant about the need for insurance, how it protects them or how to go about buying a policy.”