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Consumers not cutting insurance

Consumers cutting back on spending as a result of the downturn have revealed they consider protection products and mortgage payments too important to cut back on.

Business Development Research Consultants quizzed 2,036 adults on their attitudes to spending during the recession and found 60% of those polled feel cautious about the current economic climate and are adapting their spending accordingly.

Some 54% of respondents say they plan to eat out less at restaurants over the next three months and 25% are saving or planning to save more.

But the research also shows that consumers are not prepared to skimp on important financial services products including insurance, mortgages, healthcare and pension contributions.

A spokeswoman for Norwich Union says that rather than cancelling policies consumers are actually seeking higher levels of cover.

She says: “It’s not surprising that customers recognise the value of their life cover in these challenging times.”

Mark Long, director of BDRC, says: “Looking at consumers’ spending plans for the next three months, it’s clear some companies are going to have to think hard about how they can convince consumers their products and services shouldn’t be one of the economies they make.”

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