New research from premium finance company Premium Credit reveals more than two of five insurance customers have been spending more time shopping around for the best insurance price and cover since the start of the pandemic.
Forty-three per cent (43%) say they are taking more time to compare prices and quality of cover. Most cite increased innovation and competition in the industry as the main reasons for their increased interest, while 36% say the lockdown has made them used to shopping around.
More than a quarter of those spending more time shopping around say they have saved money as a result. The same proportion of respondents spending more time shopping around have also switched to using digital platforms during the pandemic.
“The COVID-19 crisis has accelerated innovation and the use of technology across many industries. [That] is being reflected in the insurance market with customers spending more time assessing the most competitive prices and the best quality of cover, a trend that is set to continue during the increasingly tough global economic conditions,” said Adam Morghem (pictured), Premium Credit strategy, marketing & communications director.
Premium Credit’s insurance index shows that around two out of three insurance customers use some form of credit to pay for one or more insurance policies, with credit cards being the most popular form of borrowing (35%) compared to finance offered by their insurer and/or premium finance (27%).
One in three customers who use credit to pay for an insurance policy admitted to borrowing more than they had in the previous 12 months, with more than a quarter of them blaming insurance premium rises for their increasing use of credit.
Premium Credit advises customers to consider premium finance, which enables them to pay monthly for cover instead of in a lump sum, spreading payments to ease cash flow challenges.
“Unlike other forms of credit … premium finance is specifically designed for insurance buyers to help make important insurance policies affordable and improve cashflow. Looking to spread the cost of an annual policy into more manageable monthly payments works for many millions of UK consumers and businesses,” Morghem said.
