The FCA has implemented a package of remedies to improve competition and protect home and motor insurance customers from loyalty penalties. This includes new rules so that renewal quotes are not more expensive than they would be for new customers. These measures address the issues identified in the FCA’s September 2020 market study, which found that millions of customers lose out if they renew repeatedly with their current providers. In 2018, 6 million loyal policy holders would have saved £1.2 billion had they paid the average price for their actual risk.
People are 3 times more likely to have insurance for their pets’ health as they are to have critical illness cover for themselves, a survey has found. Some 18% of people surveyed have taken out pet insurance while just 6% have critical illness cover. It suggested the volume of new pets being acquired during coronavirus lockdowns may have encouraged people to purchase protection for their animals.
UK borrowers who have been financially impacted by the Covid-19 crisis are likely to seek mortgage advice, according to Legal & General. Its latest research uncovered three in five borrowers (60%) whose financial circumstances have changed and 50% of borrowers who have not seen a change to earnings say that it will be important to seek advice when looking for their next mortgage.
26% of homeowners have missed a mortgage payment due to falling ill or having an accident, and one in seven (14%) say this has happened more than once, according to research from. 34% of respondents said they have had to take four weeks or more off work due to accident or illness. As a result of this, almost half (47%) said they needed financial support to help them meet their mortgage repayments. Three in five (61%) took four weeks or more off work to care for themselves, while 19% cared for their partner and the same number (19%) to care for a family member. 17% took time off to care for their child(ren). The research also found that almost half (47%) of respondents with a mortgage currently have no mortgage financial protection in place, despite 43% saying they are concerned about making their monthly mortgage repayments and 40% having no savings to fall back on. One in seven (14%) admitted to regretting not having any mortgage protection in place.
The housing market has bounced back however, difficult economic conditions and job insecurity mean purchasing a house is still no mean feat. Which is why it’s surprising that some consumers haven’t learnt the value of protecting their home with the right insurance.