’The rising numbers of insurance customers spending more time on shopping around reflects the rise in prices,’ says chief sales officer
More than half of insurance customers are putting more time into finding the most competitive deal online amid cost of living pressures.
That was according to Premium Credit, which found that 53% of insurance customers were shopping around in order to keep costs down.
It also revealed that 71% who are spending more time on comparing prices and quality of cover said they were motivated by rising prices across the economy.
For the premium finance provider’s research, a representative sample of 1,106 aged 18-plus were surveyed between the 10-12 March 2023.
Owen Thomas, chief sales officer at Premium Credit, said: “The rising numbers of insurance customers spending more time on shopping around reflects the rise in prices across the economy in general.”
The research also revealed that 22% of those surveyed said that increased innovation in the insurance industry made it worthwhile spending more time on shopping around.
And a total of 18% said increased use of digital technology made shopping around easier.
“The insurance industry has made it easier for people to shop around and innovation across the sector makes comparing prices and levels of cover worthwhile,” Thomas added.
Credit
Meanwhile, Premium Credit’s Insurance Index, which monitors insurance buying and how it is financed, found that the numbers of people using some form of credit to pay for one or more insurance policy increased to 70% from 66% in March 2022 and 69% in October 2021.
Read: Rankings reveal largest global brokers in 2022
Read: Who is the most profitable insurer in UKGI?
Explore more finanical-related content here or discover other news stories here
It said key reason for the rise in the use of credit to pay for insurance is the cost of living – around 44% who use credit said they borrowed more to ease financial pressures while 18% said they increased borrowing because credit had become cheaper.
“Premium finance is specifically designed for insurance buyers to help make important insurance policies affordable and improve cashflow,” Thomas said.
“It is a very cost-competitive means for consumers to buy insurance and better manage their finances through spreading payments.
“At a time when household finances are under pressure it can be a good alternative to other forms of credit.”
No comments yet