ABI: Consumers failing to protect against economic downturn

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ABI: Consumers failing to protect against economic downturn

Mon 14th Jul 2008

Despite the current uncertainty surrounding the UK's economy, consumers are failing to take out insurance products which protect them in the event of redundancy, it has been found.

Statistics produced by the Association of British Insurers (ABI) suggest that, although 82 per cent of people surveyed think the economic environment will worsen over the next 12 months, 69 per cent reported they are not prepared to secure cover to protect themselves.

"It is worrying that so many people are not prepared to look at taking out protection insurance, even insurance which covers redundancy, given the uncertain economic outlook," stated ABI assistant director Nick Kirwan.

He added that the industry must work harder to persuade people of the value of having the right insurance in place.

Meanwhile, figures produced recently by the Post Office found that the over 50s have been hit hard by the economic downturn, with 47 per cent having to use their credit cards for everyday purchases, such as buying food.

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