The opportunity to sell extra insurance products is there, right now, as many UK consumers are actually better off after lockdown. No expensive holidays, minimal entertaining and eating out costs for children, plus the 80% furlough scheme, grants and loans, all adds up to a cash bonus for many people. Here’s the news from Lloyd’s Bank – who are also pushing into the insurance market a bit harder in 2020, according to recent reports from the FT.
Brits were holding on average 11% more money in their accounts at the end of May, compared to pre-lockdown, despite the impact of the pandemic on people’s wages.
Data from Halifax has found that the build-up of balances coincided with a significant fall in outgoings since lockdown was introduced. In May alone, spending on essentials and non-essentials fell 3% and 32% year-on-year, and much of that has been retained by customers. The average current account balance is now higher than pre-pandemic levels.
However, many have also had their income substantially impacted by the pandemic, leaving them in a worse position.
Martin Turner, Head of Current Accounts, Halifax said: “The pandemic has created lots of uncertainty in a very short period of time, forcing people to make quick decisions on what to do with their money.
“Households appear to be adapting quickly, with balances increasing against a backdrop of falling income. However, we know that not everyone is lucky enough to be in this position. If you feel your future finances are at risk you should contact your bank at the earliest opportunity to get the help and support you need at this challenging time.”
For those with extra money, it’s important that people use it wisely and retain a cushion for future uncertainty.
Martin Turner continued: “For some, cash has built up in accounts naturally through lockdown, as shop and leisure closures and travel restrictions have resulted in less money being spent. Deciding how best to manage lockdown finances might feel overwhelming at times so we have created a set of top tips to help people right now to navigate their next steps.”