Digital Financial Literacy and Insurance Purchase Intention: The Mediating Role of Risk Perception

Abstract

With the rise of digital financial services, young adults are widely engaging with digital tools and platforms. Despite this growing involvement, their intention to purchase insurance online remains uncertain. This study examines the relationship between digital financial literacy and insurance purchase intention, considering the potential mediating role of risk perception among digitally active young adults in the Davao Region. Using a quantitative correlational descriptive research design, data were collected from 300 respondents from January 2026 to February 2026 through surveys, using a nonp-probability sampling method that combined quota and purposive sampling techniques. A structured survey questionnaire, adapted from established instruments on digital financial literacy, insurance purchase intention, and risk perception, was used after undergoing expert content validation and pilot testing for reliability. Data were analyzed using JASP through descriptive statistics, Pearson's correlation and mediation analysis with bootstrapping were applied to examine the relationship. Findings indicate that young adults consistently demonstrated a very high level of digital financial literacy alongside high levels of insurance purchase intention and risk perception. Research found that people who know more about finances digitally tend to want insurance more. It turns out, too, that if someone thinks there's a higher risk, they're more likely to consider buying insurance. But interestingly, just because someone is good with digital financial tools doesn't mean they see insurance risks differently than others. These findings indicate that higher digital financial literacy is associated with greater insurance purchase intention, emphasizing the importance of targeted financial education initiatives.