Home⇛International Journal of Multidisciplinary: Applied Business and Education Research⇛vol. 7 no. 9 (2026)

Digital Financial Literacy And Insurance Purchase Intention: The Mediating Role Of Risk Perception

Krizha Ela Adlawon | Precious Leah Bulat-ag | Fria Lyriech Fernandez | Ronnette Jumao-as | Ayzelle Majasol | Queennie Purca | Gyrelle Merr Rojas | Jasmine Somera | Janella Gwayn Tapic | Glozy Belle O. Pial | Almira A. Batulanon | Angelo A. Palmero

Discipline: Finance

 

Abstract:

With the rise of digital financial services, young adults are widely en-gaging with digital tools and platforms. Despite this growing involve-ment, their intention to purchase insurance online remains uncertain. This study examines the relationship between digital financial liter-acy and insurance purchase intention, considering the potential me-diating role of risk perception among digitally active young adults in the Davao Region. Using a quantitative correlational descriptive re-search design, data were collected from 300 respondents from Janu-ary 2026 to February 2026 through surveys, using a nonp-probability sampling method that combined quota and purposive sampling tech-niques. A structured survey questionnaire, adapted from established instruments on digital financial literacy, insurance purchase inten-tion, 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 media-tion analysis with bootstrapping were applied to examine the rela-tionship. Findings indicate that young adults consistently demon-strated a very high level of digital financial literacy alongside high lev-els 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 im-portance of targeted financial education initiatives.



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