Insurance in the Aspects of Sustainable Development: The Behavioral and Cognitive Determinants of Consumer Demand Using SEM

The insurance sector plays a crucial role in maintaining economic stability and the financial security of households; however, the level of demand for insurance products remains lower than would be expected based on consumers’ actual risk exposure. Previous research indicates that insurance purchasing decisions are shaped not only by economic factors but also by psychological and behavioral mechanisms. The aim of this article is to identify and systematize the most important determinants influencing consumer demand for insurance products, with particular emphasis on cognitive barriers and attitudes that reduce purchase propensity. The study employs an extensive literature review and structural equation modeling (SEM-PLS), enabling the simultaneous analysis of the relationships between attitudes, knowledge, beliefs, experiences, risk perception, and actual insurance ownership. From a sustainable development perspective, this mechanism fosters a “culture of responsibility”—insurance becomes a permanent and predictable element. The results demonstrate that insurance decisions are the result of a complex interaction of multiple factors (cognitive, normative, emotional, and relational) rather than simply a response to risk levels. The most important determinants of insurance policy ownership are as follows: (1) internal standards of responsibility, (2) product competence, (3) quality of experience, (4) lack of cognitive barriers, and (5) a sense of trust in the institution and advisor. From a sustainability perspective, these results suggest that the insurance market is in a “partially balanced” phase: strong elements promoting sustainable resilience are visible (standards of responsibility, the growing importance of knowledge, the role of positive experiences), but at the same time, clear barriers remain (lack of trust, underestimation of risk, postponement of decisions), which limit the full potential of insurance as a tool for socioeconomic stabilization.