Younger Generation Risking All With Cheap Insurance

GENERATIONS RISKING IT ALL WITH CHEAP INSURANCE PRODUCTS

New research reveals that younger generations are taking risks when buying insurance

The British Insurance Brokers’ Association (BIBA) has published new research into consumers insurance purchasing habits, revealing a worrying trend amongst young people buying insurance.

An independent survey conducted by Populus and commissioned by BIBA, has shown that whilst 76% of those aged 18 to 24 believe that seeking advice is important when buying insurance, 46% continue to make their insurance purchasing decision based solely on price. Furthermore, almost a half of younger people believe that buying insurance online is easy, commenting that “you just click a few buttons and then you can relax because you’re covered”.

These habits are in stark contrast to those aged 25 and over. On average more than 70% believe that price is just one of a number of aspects which should be considered when purchasing insurance.
The research is published ahead of BIBA Chief Executive Eric Galbraith’s keynote speech at the annual BIBA conference at the Excel Centre in London’s Docklands on Thursday, 24th May.

Commenting on the survey, Eric Galbraith said: “We are pleased to see that there is a high level of understanding of the need to take independent advice when buying insurance, but we have real concerns about the generation gap that seems to be developing.

“These results show there is a real discrepancy between younger people’s understanding of insurance, and their actual purchasing habits.
“The ability to buy online is a method many people use to buy insurance protection, but consumers must ensure they are getting the right product for their demands and needs.

“BIBA is concerned younger people are purchasing cheap insurance products, without ensuring they have the correct cover, excess, premium or instalment plan for them.
“Most brokers have websites that offer choice and quotation facilities accompanied with free advice to consumers (by phone or e-mail) before they press the buy button. This could ensure the correct cover and save young people millions.

“We live in a fast moving society and it is all too easy to believe that the touch of a button will provide appropriate cover. This however is no substitute for independent, expert advice.
“Value is not only dependent on price, but also on the product that best meets consumer needs.”