ABI: consumers should protect themselves
Consumers need to “protect themselves better” given the economic outlook and increasing risks of redundancies, experts have said.
The Association of British Insurers (ABI) was reacting to a study it conducted revealing nearly 70 per cent of UK residents would not be willing to take out payment protection insurance (PPI) to cover regular outgoings.
Around nine in 10 people also think the country’s economy is in a worse state than it was a year ago, the research showed, with around two thirds saying they would face problems if suddenly made redundant.
ABI chief economist and research director Rebecca Driver said: “Given the economic outlook and the risk of rising unemployment, people need to develop strategies to protect themselves better.”
Fifty per cent of respondents to the ABI study said they had a life insurance policy, but 39 per cent said they did not have life insurance, payment protection insurance or mortgage payment protection insurance.
ABI assistant director of health and protection insurance, Nick Kirwan, said: “It is worrying so many people are not prepared to look at taking out protection insurance, even mortgage insurance or insurance which covers redundancy given the uncertain economic outlook.”
He added the ABI would need to “work harder” to get the message across to consumers about peace of mind and the value in income protection.
According to city analyst firm Capital Economics, middle class workers are now more likely to be taking on second jobs to make ends meet.
Typical extra work for this social group includes freelance work, selling items on eBay, designing websites and even working as chauffeurs.