People ‘to spend less on insurance’
June 24, 2008 by admin
Filed under News, News-Insurance
Consumers are hoping to reduce their spending on insurance products, research suggests.
Among consumers who buy insurance through price comparison sites, 26 per cent are looking to reduce their insurance spending, according to the survey commissioned by business advisory firm Deloitte.
One-fifth of those who hope to reduce their spending on insurance aim to cut their payments on payment protection insurance (PPI), which provides coverage if the borrower is unable to make repayments on products like loans, mortgages and credit cards in the event of ill-health, unemployment or death.
David Rush, insurance partner at Deloitte, said: “At a time when households have less disposable income, it is understandable that many will look at how they can reduce their spending.
“However, consumers should think carefully about which types of insurance they most need in a down-turn.”
Mr Rush suggested that people are most likely to need PPI cover if the economy enters a difficult period.
In related news, Sainsbury’s Bank has suggested that consumers should check with their car insurance provider before they drive abroad to ensure that they are fully covered.
