SUMMARY of a report by Marcus Banks, Senior Research Fellow, and Dina Bowman, Principal Research Fellow, in the Work and Economic Security team of the Brotherhood’s RPC.
It is commonly understood that the financial harm resulting from a risk, such as accident, illness or unemployment, can be dealt with in one of two ways: preparation or coping. While social security provides a safety net to moderate some of these harms, increasingly individuals are encouraged to prepare for a future harmful event by having a savings buffer or buying insurance. Without the resources to prepare for a harmful event or social policies that provide an adequate safety net, people have to cope with the harms that occur. Our study shows that for people struggling with financial insecurity deciding whether to take out insurance is just one decision in a process of juggling risks.
SOURCE: Banks, Marcus and Bowman, Dina. “Juggling risks: Insurance in households struggling with financial insecurity.” Research & Policy Centre, Brotherhood of St Laurence, December 2017.
Produced by the librarians at the Brotherhood of St Laurence in Melbourne, Australia