Consumers more aware of need for protection

Consumers are more concerned about protecting their family since the financial downturn, research suggests.

Women are the ones leading the way as they become increasingly aware of the need to do this, it also found.

The study conducted by Hannover Life Re and the Protection Review saw 1,000 adults interviewed by pollsters ICM.

It revealed a significant increase in the number of people wanting to protect their family's income and health.

When asked if this was less or more of a priority since the financial downturn half (49%) said it was of greater importance, more than double the 2010 figure (22%).

Women were more likely than men to see this as a priority with 55% responding positively compared to 43% of men.

When asked who or what people would rely on if they were off work for a long period due to illness or accident, responses were;

• 54% savings,
• 46% partner or spouse,
• 35% family or parents,
• 36% State benefits,
• 31% employer cover,
• 19% protection products.

Many still believe that their savings will see them through, with 31% believing their savings would allow them to manage to pay their bills without a regular income for more than 12 months.

The reinsurer suggested that the increase in the number of people taking more responsibility for their own and their family's income and health could be an indication that many feel the recession starts here.

Stuart Paton Evans, general manager for business development at Hannover Life Re UK, suggested the findings indicated that many consumers still have unrealistic perceptions of surviving financially for more than 12 months.

"The reliance on State benefits has decreased which points to people picking up on austerity messages from the government," he said.

"However, for the life insurance industry, this has yet to have a positive impact on protection sales although 38% of those surveyed did not believe they could count on any help from the State.

"The message that selling a home or car, relying on partners, employers or the State are insufficient long-term solutions to protection needs appears to be filtering through to consumers.

"People are aware of the need for adequate protection and many are now saving more to build a nest egg, but are still failing to translate this awareness into action," he added.

Full details of the consumer research An uncertain future will be launched at the Protection Review dinner on 23rd June 2011 at the Landmark Hotel, London.