How market demand of savings and insurance instruments evolves against variations in several economic variables.

The objective of this thesis is to provide a deep understanding of the dynamics of households’ savings and insurance coverage with respect to Italian families that can be used as reference population. This objective is persecuted by focusing on the few most important variables, which include pure and financial risk, the trend of economic cycle, and finally the impact of COVID-19 pandemic. Data analysis and economic indicators shows significant trends on how Italian households have answered to changing financial conditions and increased health and economic uncertainty. The statistics show an important increase in market demand for insurance coverage during this period, maybe given to an increased knowledge of risk-related subjects. Hence, it can be assessed that the demand for insurance coverage increases in difficult situations, not only from the economic standpoint, reflecting an increasing uncertainty in financial markets. The output of these findings suggests that the economic cycle is a key element that must be studied. The COVID-19 pandemic has further emphasized this tendency, as Italian households look for greater financial security when having to do with market volatility and increase in general level of uncertainty. In this case talking about turning point in economic cycle is not enough, maybe the recent economic history can be seen as disruption in economic cycle and exactly in this way the writer decided to treat COVID-19 pandemic while drafting this paper. Furthermore, research made by the author on demographic and economic variables has shown an important correlation between wealth, education, gender, age, and reliance on insurance and savings products. Wealth and education can be seen as significant explanatory variables in the decision to purchase insurance coverage, while differences in gender and age can be used to explain variances in consumption patterns. This study tries to provide a thorough understanding of savings dynamics and how both insurance market and demand work under the light of Italian households’ preferences. Contemporarily it provides for analysis of important elements that influence individuals’ behaviors. The conclusion reached can be used in the insurance sector and in economic policy making, as they provide a solid basis for further research in this field.