Daily Insurance Industry News
 
 
Daily Insurance Industry News
Monday 20th of May 2019
June 9, 2009

One in four cancel home insurance as recession bites

by Gill Montia

Story link: One in four cancel home insurance as recession bites

The Association of British Insurers (ABI) has published new research indicating that one in four people have cancelled their home insurance in efforts to survive the recession.

The study was conducted by YouGov on behalf of the ABI and involved 2,000 adults across the UK.

It reveals the extent to which policies are either not being renewed or cancelled by households desperate to save money.

Twenty-two per cent of those questioned had ditched their home contents insurance during the past year, while for building insurance the proportion stood at 17%.

In Scotland, the figures increased to 28% for contents and 21% for buildings.

However, 49% of those surveyed said that they currently worry about their inability to cope financially with a sudden event and the ABI’s director general, Stephen Haddrill, comments: “Cutting back on insurance protection is a false economy.”

He adds “in these uncertain times, insurance provides a vital financial safety net” and advises that the insurance market remains very competitive, so that shopping around can secure a good deal.

The research also revealed that 13% of respondents had cancelled their life insurance in the past 12 months.

Other key findings are as follows: 45% of those questioned wanted to save more; 53% of women worried about coping with an unexpected event, compared to 43% of men and 44% of women worried about the adequacy of their pension compared with 38% of men.

 

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