Family Finances

Insurance Against Financial Shocks: The Next Frontier of Financial Inclusion

April 2, 2024  • Katherine Lucas McKay & Sohrab Kohli

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This brief highlights the urgent need for comprehensive solutions to address financial shocks faced by a majority of U.S. households annually. Building up liquid savings is important, but it’s only one tool in the financial inclusion toolbox. Risk-pooling strategies, offered for centuries by insurance providers of different kinds, are equally essential in helping Americans weather shocks that are too expensive to self-insure against.

Now, as new risks emerge for U.S. households—including those related to climate and hazardous weather, caring for family members, and digital technologies—we convened a community of leaders from major insurance companies, the debt management field, academic and policy experts, and startups to discuss innovative workplace insurance products that can provide people greater stability when they experience financial shocks.

Download this brief and read about the opportunities we identified for increasing the number of Americans who can access, use, and benefit from insurance coverage when dealing with financial shocks.


The Aspen Institute Financial Security Program thanks Guardian, The Hartford, and Prudential Financial for their generous support of this brief.