Recession cancels policies

The Association of British Insurers (ABI) has found that almost one in four people admit to cancelling or not renewing their home contents insurance and other insurances are also being ditched.

The survey highlights:

• 22% have cancelled or not renewed their home contents insurance
• 17% have cancelled or not renewed their buildings cover
• In Scotland, the figures rise to 28% for contents and 21% for buildings
• 13% have cancelled life insurance
• 21% are considering reducing or stopping saving
• 49% worry about their in ability to cope with a sudden event, such as a burglary
• 53% of women worry about how they would cope with an unexpected event compared to 43% of men

Stephen Haddrill, the ABI’s director general, said: “Cutting back on insurance protection is a false economy. In these uncertain times, insurance provides a vital financial safety net to steer individuals, and families through the recession, as well as helping to provide long-term security.