Confused.com calls for insurance shake-up
The insurance market is failing to keep up with social changes according to a new study by comparison site Confused.com.
With more people marrying later in life, the site claims that traditional insurance products are failing to meet the needs of the increasing number of people who are joining up with friends to buy a house.
Confused.com and The Future Laboratory interviewed 2,000 single UK adults in April and found that a growing number of people have no insurance cover to protect against losing the person they share their life and home with, particularly if this person is a friend.
Traditional life insurance policies are geared towards families and elderly couples Confused.com says.
Estate agents usually advise groups of friends to draw up an exit agreement before buying a house together, but the comparison site is calling on insurance companies to reflect changing living arrangements in their products.
Confused.com’s chief marketing officer, Mike Hoban, said: “There is an opportunity for life insurance companies to reflect the rich diversity of our society and to meet the needs of more people by making available products and services which reflect the value that people put on personal relationships outside of traditional family and marriage ties.”
Separately, insurer Swiss Re has highlighted a problem with many British people being under-insured for life insurance and income protection.
The insurance industry needs to improve the way it communicates with people about these products, Swiss Re said.
The company’s chief executive, Russell Higginbotham, said: “Under-insurance is proving to be a long-term problem in the UK.
“Simple life assurance cover is not expensive. For example, a healthy 35-year old male non-smoker would only pay £2 per week for £100,000 of life cover to age 65.”
The UK’s income protection gap has grown from £130bn to £190bn in a decade, Swiss Re says in its Term and Health Watch 2012 report.