Swiss Re, a top reinsurer, is calling on UK life insurers to root out the complexity around terminology, products and services and says that now is the time for the industry to improve its engagement with consumers.
This is the key message in the latest edition of Swiss Re’s Insurance Report entitled “The cost of doing nothing”. While consumers display a positive attitude to receiving independent advice on savings or protection cover, they show limited willingness to pay fees for it. They also struggle to identify the names of independent financial adviser companies.
Swiss Re’s findings are supported by extensive research among more than 1000 UK consumers on their financial and protection needs. The report also draws on views from leading industry experts. It includes an extensive economic and demographic analysis of changing health and social trends and shows how these factors may impact future demands for protection, retirement and long-term care solutions.
Asked for the reasons against buying protection insurance cover, 43% claim not to need life insurance and 40% believe they do not need income protection. The cost is given as a reason for not taking out products, but many people are in practice unsure about how much it costs or how much protection they already have.