More than two out of five insurance customers are spending more time shopping around for the best price and cover since the start of the COVID-19 crisis, new research from the UK’s leading premium finance company, Premium Credit, shows.
Its study found that 43% of insurance customers say they are taking more time to compare prices and the quality of cover since the pandemic started with increased innovation and competition in the industry the main reason for their increased interest.
More than one in four (26%) who are spending more time shopping around say they’ve switched to using digital platforms during the crisis and have saved money as a result of comparing prices. 36% say they are spending more time shopping around because they got used to doing this during the lockdowns and restrictions.
CREDIT PLAN DEMAND
Premium Credit’s Insurance Index shows that around two out of three (66%) insurance customers use some form of credit to pay for one or more insurance policy. Credit cards are the most popular form of borrowing with 35% using them compared with 27% who rely on finance offered by their insurer and/or premium finance.
Its study found that one in three (34%) customers who use some form of credit to pay for one or more insurance policy borrowed more than they had in the previous 12 months. Around 27% blamed insurance premium price rises for their increasing use of credit.
Premium Credit is advising customers to consider premium finance which, for a small charge, enables them to pay monthly for cover instead of in a lump sum. Spreading payments in such a way can help ease cash flow challenges and make paying for vital insurance more affordable.
Adam Morghem, Premium Credit’s Strategy, Marketing & Communications Director said: “The COVID-19 crisis has accelerated innovation and the use of technology across many industries and 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.
“Unlike other forms of credit, like credit cards, 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.”