As a leading provider of insurance premium finance we conduct a series of studies and unique market analyses each year to monitor insurance buying and how it is financed.
The latest Premium Credit Insurance Index, now in its 4th year, was exclusively launched at this year’s BIBA Conference back in May, with a second phase of annual research now completed.
The most recent press release announcing some of the latest findings makes interesting reading with headline figures including:
72% of customers use some form of credit to fund cover compared with 61% a year ago with the biggest increases recorded for customers buying motor and home policies.
The ongoing cost of living squeeze was highlighted as the biggest reason for increased borrowing with 32% citing it while 18% blamed the impact of energy bills and 18% said premiums had increased.
Around one in 20 (5%) who use credit to pay for insurance say they have sold their car in the past year because they cannot afford cover while 8% have taken on extra jobs to pay for insurance.
Adam Morghem, Premium Credit’s Strategy, Marketing & Communications Director said: “There has been a sharp rise in the number of people turning to credit to pay for one or more insurance policies as the cost of living pressures continue to tighten budgets.
“The increases have been particularly notable in car and home insurance but the rises are across the board underlining not only the importance of credit in the insurance market but also the need to find the most efficient payment options available.
“Premium finance is specifically designed for insurance buyers to conveniently spread the cost of insurance policies. Premium finance is a very cost-competitive means for consumers to buy insurance and better manage their finances. At a time when household finances are under pressure, it can be a good alternative to other forms of credit.”
The full Index can be viewed here