The Effect Of Financial Literacy On Household Interest In Utilizing Insurance Financial Products

Abstract

Insurance is needed to provide financial protection. However, Household trust in insurance
financial products and services is lower than in banking, especially in Bali Province. Financial
literacy is needed to increase trust in insurance financial services. This research aims to examine
the condition of financial literacy at the household level in Bali Province and analyze the influence
of financial literacy on household interest in utilizing insurance financial service products in Bali
Province. This research used a quantitative associative approach with survey data collection
techniques using questionnaires. The data analysis technique for this research uses the formation
of index numbers to measure the financial literacy index at the household level in Bali Province
and Binary Logistic Regression to determine the influence of the independent and dependent
variables. The analysis results show that the financial literacy index in Bali province is in the high
category, and financial literacy has a significant relationship with household interest in utilizing
insurance financial services.