HSBC Insurance warns against cutbacks

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HSBC Insurance warns against cutbacks

Wed 10th Dec 2008

HSBC Insurance has issued a warning to customers not to make cutbacks on their insurance in an attempt to save money during the credit crunch.

The insurance division of the bank said: "At a time when individuals are tightening their belts, there is always a temptation to cancel or cut back on insurance, as it is mistakenly seen as a luxury - not a necessity."

According to HSBC Insurance the oncoming recession and the squeeze it will put on people's disposable incomes means that replacing valuable lost possessions will become harder, making it more important for people to be properly insured.

The insurer warned that increasing job insecurity may also make income protection insurance more valuable.

HSBC also predicted that the insurance industry, like the banking industry, could expect more government intervention and reregulation next year.

Recently, Alistair Darling put forward proposals to make a previously voluntary code of conduct for banks legally binding.

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