UK:Survey reveals struggle of paying insurance premiums

By Ranamita Chakraborty

Six out of 10 insurance professionals in the UK have been contacted by consumers who have struggled to afford their insurance payments due to the impact of the pandemic, according to findings from a Chartered Insurance Institute (CII) study.

A poll of 221 CII members in June showed 61% had heard from consumers who could no longer pay their insurance premiums as their finances had been hit by the economic fallout of COVID-19.

Four out of 10 (39% or 87 insurance professionals) had not heard from any consumers struggling to afford cover because of the pandemic.

The CII’s survey comes after the Financial Conduct Authority recently announced it is important that consumers do not leave themselves uninsured, and they should not hesitate to contact their insurer or broker if they are struggling to pay premiums.

When asked how they had assisted clients struggling to pay their premiums, the CII members shared the actions they had taken to make sure customers still had cover but at a cost they could afford given their current financial circumstances.

Risk & Insurance claims and underwriting associate Michael Mutua said that given that some of his customers grounded their cars, he had suggested underwriters consider cushioning these potential clients by lowering rates.

Meanwhile, CII managing director of engagement Keith Richards said, “During these challenging times, insurance and personal finance professionals are helping consumers and assisting those who are experiencing temporary financial difficulties.

“Insurance brokers and financial advisers are best placed to consider a customer’s individual needs and their services should be sign-posted more widely. It is great to see our profession helping customers revise and retain cover at a price they can afford to ensure they remain protected against key risks.”

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