Brits in denial about insurance

09 April 2008

Research by Axa shows Brits are complacent about personal risk

Axa’s recent international protection scope survey has found that the majority of Brits shy away from preparing from unexpected events such as unemployment or illness.

The survey found that 58 per cent of UK adults thought that they were not likely to become seriously ill.

Additionally, 76 per cent thought they were unlikely to face serious financial difficulties in the course of their lifetimes and over two-thirds thought they were unlikely to deal with unemployment.

The survey also showed that 74 per cent of UK adults believed that if they did get into financial difficulties, they would be able to rely on financial support from family and friends while 38 per cent of Brits felt well insured against life risks.

Axa believed that this could explain why so many were not taking out cover to protect themselves, and their families, from these types of risks.

Iain Mallon, head of protection for Axa, said: “It is particularly surprising to see how many people think relatively common life risks, such as unemployment, are unlikely to impact of their life, particularly at a time when the global economy is under pressure and we are facing widespread predictions of house price falls.”

Val Pollard, protection specialist for London-based IFA Term Direct, claimed a large proportion of the population is in denial.

“We do not like to think about what will happen but in a lot of cases people do get ill and are unable to pay their mortgage,” she said.

“Unfortunately when you first take out a mortgage or have a child affordability can be an issue, so protection is seen as an added expense,” she concluded.