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Widespread insurance complacency opens door of opportunity for intermediaries

More than two-fifths of the population in the UK does not have adequate cover or savings if the main wage earner lost their job according to a major new research report by leading life and health insurance specialist Scottish Provident, the protection brand of Abbey National.

The survey of families, carried out by MORI Financial Services on behalf of Scottish Provident, shows that 41% of respondents would not have adequate protection insurance, savings or assets to draw upon if the main wage earner suddenly found themselves unemployed. Yet, the vast majority – 76% – dream of a life without too many financial worries.

In response to this serious and widespread issue of under-insurance, Scottish Provident has produced Families Inc, the first Annual Report designed to take the financial pulse of the average UK family.

The report, presented in the same way a company would release it annual results, puts the finances of a fictional everyday British family, the Smiths, firmly under the spotlight.

Nick Kirwan, Scottish Provident Head of Marketing & Product Development, says Families Inc had been designed for use by intermediaries as a sales tool.

He adds: “Our exclusive research shows there are still major opportunities for intermediaries to sell protection products and we believe Families Inc will help the sales process. While the number of people turning to protection products does continue to grow, clearly there is still room for improvement, and intermediaries can play a big role in helping to raise awareness of protection products.”

Included in Families Inc is a blank profit and loss account which can be used by families to

check their own financial situation and help pinpoint any weaknesses in current financial

circumstances.

Contact: 0141 944 3908 or familiesinc@commands.co.uk.

Families can also log on to a specially created Families Inc website — www.FamiliesInc.co.uk and use the online calculator to assess their financial wellbeing.

Kirwan says: “We want to encourage families to take their &#39financial temperature&#39 on a regular basis, the way companies do.”

Other survey findings include:

  • 40% of the sample interviewed said they dream of having a second home or holiday home in the future
  • A third (33%) with children in the household dream of sending their children to fee-paying schools or colleges
  • One in six (16%) Londoners say they are able to afford a second home or holiday home
  • 76% of people said their financial goal in life was not to be rich, just comfortable without too many financial worries and 69% of them believed they were likely to reach it!
  • Of those who aimed to be &#39very rich&#39, 55% said they will actually reach the goal while 30% said they wouldn&#39t
  • 71% said that paying the household bills was their biggest expense while food shopping came in second, with 70% citing this as the next largest expense
  • Only 41% said they would be able to continue their current standard of living for 6 months of more
  • 78% still believe the state welfare system in Britain should provide an adequate safety net for modern standards of living but only 29% of the British public believes it actually does
  • 7% of respondents said they would go on holiday in the future without taking out travel insurance
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