Insurance customers are working harder on shopping around
Numbers of customers putting more effort into shopping around rocket in a year
Premium Credit’s Insurance Index shows 71% of adults use some form of credit to pay for one or more types of cover
The numbers of insurance customers putting more effort into shopping around for the best cover has increased sharply as people look for the best deal available, new research1 from the UK’s leading premium finance company, Premium Credit, shows.
Its research shows 62% of customers say they are now working harder to find the best price and quality of cover compared with 53% in last year’s Premium Credit Insurance Index 2 and 43% when the index3 reported in 2022.
The rapid rise in the numbers spending more time on shopping around is mainly driven by the ongoing cost of living crisis. Around 66% who are spending more time on comparing prices and quality of cover say they are motivated by rising prices across the economy.
However nearly a quarter (24%) say increased innovation in the insurance industry has made it worthwhile spending more time on shopping around and 20% say they have become more confident using digital technology so find it easier to shop around.
Premium Credit’s Insurance Index, which monitors insurance buying and how it is financed, found that the numbers of people using some form of credit to pay for one or more insurance policy has increased to 71% compared with 70% in March 2023.
The research shows one in seven (14%) of adults have found it more difficult to secure credit such as mortgages, credit cards or loans since the cost-of-living crisis started. Around one in five (20%) say they have been turned down for forms of credit during that period with 12% saying a credit card application has been rejected.
Premium Credit is advising customers to always consider premium finance which, for a small charge, enables them to pay monthly for cover instead of in a lump sum. Spreading payments in such a way can help ease cash flow and make paying for vital insurance more convenient.
Owen Thomas, Chief Sales Officer at Premium Credit said: “The numbers of insurance customers spending more time on shopping around are growing rapidly which is inevitably due to the impact of the cost-of-living crisis affecting the economy in general.
“The insurance industry has however made it easier for people to shop around and innovation across the sector makes comparing prices and levels of cover worthwhile. Premium finance is specifically designed for insurance buyers to help make important insurance policies affordable and improve cashflow while also being more convenient.”
“It is a very cost-competitive means for consumers to buy insurance and better manage their finances through spreading payments. It is firmly established as a good alternative to other forms of credit.”
Authored by Premium Credit
About Premium Credit
We are the leading provider of premium finance in the UK and Ireland, and the only company endorsed by BIBA.
We are authorised and regulated by the Financial Conduct Authority, and work with over 3,000 producers of all sizes. We serve over 2.1 million customers, process 24 million direct debits and receive advances of £3.5 billion.
For over 30 years, we’ve led the market through thought leadership, innovation and technology and have helped our partners offer finance compliantly to their customers through face-to-face, telephony and online channels.
We continue to invest to ensure we provide a quality service and support that helps you grow your business and commission. From the delivery of a seamless customer journey, which includes real time decisioning for financing and 24/7 account servicing, to consultation that improves the offer of finance to customers, we are committed to growing the premium finance market.
Our Specialist Lending division also provides finance to pay other annual costs, such as professional fees, membership subscriptions, commercial service charges, golf clubs and school fees.