CII research reveals customers struggling to afford insurance premiums
Six out of 10 insurance professionals have been contacted by consumers who have struggled to afford their insurance payments due to the impact of coronavirus.
A poll of 221 Chartered Insurance Institute members in June showed 61 per cent 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 per cent or 87 insurance professionals) had not heard from any consumers struggling to afford cover because of the pandemic.
When asked how they had assisted clients struggling to pay their premiums, the CII’s 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.
Michael Mutua, claims and underwriting associate at Risk & Insurance, said given that some of his customers grounded their cars he had suggested underwriters consider cushioning these potential clients by lowering rates.
Keith Richards, managing director of engagement for the Chartered Insurance Institute, 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.”
The CII’s survey comes after the FCA recently announced it is important consumers don’t leave themselves uninsured and they should not hesitate to contact their insurer or broker if they are struggling to pay premiums.
Authored by the CII
The Chartered Insurance Institute (CII), the leading professional body for the global financial services profession, exists to promote higher standards of integrity, technical competence and business capability. With over 115,000 members in more than 150 countries, the CII is the world's largest professional body dedicated to insurance and financial services.
Our membership covers all disciplines within the insurance industry (claims, broking, underwriting), those working in the life and pensions sector, the mortgage advice market and financial advisers (under the Personal Finance Society brand).
Our Royal Charter requires us "to secure and justify the confidence of the public" in our members and in the insurance and financial services sector.
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