As millions suffered lower incomes and job losses, a quarter of Brits (26%) spent more time on money admin during lockdown than usual, says Royal London Insurance, with refund-chasing (15%) and research for better deals (15%) topping the list of tasks, according to research by Opinium on behalf of Royal London.
Some had to devote more time to sorting their personal finances than others: the proportion of people doing more money admin than normal rose to 41% among self-employed people and 43% of those who had been made redundant due to COVID-19.
Contacting an airline or travel company was the most time-consuming money admin chore, with the average time taken to reach a resolution at 66 minutes, followed by researching a better rate or deal, which took an average 51 minutes. 16 per cent of people said that contacting an airline or travel company had taken them more than three hours.
The problem offers a great opportunity for insurers and brokers who have installed chatbots, parametric policy payout software and easy-to-navigate apps, that maximise the control consumers have over their insurance needs. When time is tight, the companies that make stuff happen within three or four clicks are the ones likely to get a higher Trustpilot rating – and a renewal deal sorted further down the line.
The other big bugbear for many consumers is Mid-Term adjustment charges. That really needs to be consigned to the insurance museum in a truly online era. It may yet spark a PPI goldrush in future – it only takes one Martin Lewis backed test case.
For the self-employed, for whom “time is money”, there is an opportunity cost to spending hours on the phone instead of working: the average cost in lost earnings dealing with an airline is £17.90 per hour on the phone.
Becky O’Connor, personal finance specialist at Royal London, said: “The pandemic has brought all sorts of disruption to people’s daily lives, but one annoying and time-consuming side effect is hours spent wrangling over refunds and trawling for cheaper deals.
“With incomes squeezed or lost, taking care of money admin is an important part of staying afloat. Although it takes time, which for some can mean lost earnings, it’s time well spent if what you are chasing is going to generate an even bigger cost saving or refund.”
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