More than three-fifths (62%) of consumers and 43% of SMEs in the UK have not heard of premium finance, it’s been revealed.
Research conducted by Consumer Intelligence, on behalf of premium finance company Premium Credit, pointed to low awareness of loans that allow insurance policyholders to spread the cost of their cover monthly instead of paying upfront. This despite there being only 51% of consumers and 45% of SMEs who say they pay for their insurance in a single payment.
Meanwhile when those who have not used premium finance were provided an explanation as to how it works, here’s what the consumer and SME polls found:
“Insurance premiums have been rising and millions of people and SMEs are struggling to pay for their cover,” said Premium Credit strategy and marketing director Adam Morghem.
“Premium finance is a great way for many people to spread the cost of their insurance, but our research shows awareness among consumers and SMEs is very low. More needs to be done to raise awareness of premium finance and its many benefits.”
Meanwhile British Insurance Brokers’ Association chief executive Steve White believes premium finance can play an important role in helping more people and businesses be financially protected.
“It is worrying that so many consumers and SMEs are cancelling insurance because of the cost and risking being under-insured or having no insurance at all,” he commented. “Our 2019 Manifesto has identified that there can be financial challenges for some people in accessing insurance and we are committed to improving financial inclusion in this area.”
