| Consumers failing to protect themselves |
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| Written by Gary Howes | |
| Tuesday, 15 July 2008 | |
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New research shows that people are failing to consider insuring against financial uncertainty.
The Association of British Insurers (ABI) commissioned research into how people perceive the current economic environment and how they intend to make accommodations for potential setbacks. Of those surveyed 92% thought that the economic environment was at present worse of than it was a year ago. And a staggering 82% expect the environment to worsen over the next 12 months. The ABI represents the collective interests of the UK’s insurance industry, and as a result the report commissioned by YouGov is quick to highlight disappointment at findings that 69% of respondents said they would not be willing to take out any protection products that would protect them in the case of redundancy. The report does not provide details on how many of those surveyed consider redundancy a risk in the current climate. A majority or respondents were however of the opinion that they would fare badly should they lose their job tomorrow, with only 3% saying they would cope well. Cutting back spending and relying on state benefits were the most popular actions that would be implemented should people lose their jobs. Nick Kirwan, ABI Assistant Director of Health and Protection Insurance says that, “It is worrying that so many people are not prepared to look at taking out protection insurance, even insurance which covers redundancy given the uncertain economic outlook.” The survey also reveals that 74% of people would make spending at the pub and eating out the first area of expenditure cuts. According to ABI’s chief economist Rebecca Driver people are going to have to strategies that are more dynamic and far reaching than merely saving: “given the economic outlook and the risk of rising unemployment, people need to develop strategies to protect themselves better.” Related articles Related links |
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