Norwich Union reveals results of life insurance market survey

Article date: 7 March 2008

  • Apathy is causing £2.3 billion protection gap

Apathy is leaving 20 million UK adults exposed to unnecessary financial risks because they don't have any form of life or income-related protection, says Norwich Union.

Figures from the UK's largest insurer reveal that of those without life insurance, more than a third (37%) say this is because it's still on their ‘to do' list or they simply haven't thought about it.

One in seven (15%) say they have made other provisions, one in ten (10%) haven't bothered because they have no dependents and feel no need for insurance, while a further 9% say they don't have it because they don't have a mortgage.

A worrying 3% of people say they haven't purchased cover because they don't understand it.

Darren Dicks, head of protection marketing from Norwich Union says "These findings are cause for concern as they suggest many people are taking an ‘it won't happen to me' approach to protection. Around 52% of UK adults have no life cover at all* and the remainder are either underinsured or unsure about what type of cover they hold.

"There is currently a £2.3 trillion protection gap in the UK** which leaves a large proportion of the population vulnerable. Many people wait until they have a particular event in their lives, such as a house purchase or the birth of a child before they purchase life cover, but people shouldn't take the view that they need to wait. Norwich Union can offer affordable life cover online in as little as 15 minutes through our Simplified Life product. And while cover doesn't make people immortal, it can offer invaluable peace of mind."

The research also reveals a number of key "trigger" moments which prompt people to make life insurance purchases. These include:

  • Buying first home: 44%
  • Moving home: 18%
  • Divorce/separation: 14%
  • Getting married/moving in with partner: 13%

Norwich Union offers life insurance from as little as £10 a month via phone, web or through financial advisers. To find out more visit http://www.norwichunion.com/life-cover/ or call free on 0800 0685549.

-ends-

Statistics taken from Norwich Union Customer Segmentation Workshop report, October 2007.

* Source: Swiss Re

** The gap between the amount of life cover held by consumers and the amount they should have to meet their needs.

Press office contact:

Sarah Horner: 01904 45 2828  / out of hours: 07800 691569

Notes to editors:

About Norwich Union
Norwich Union is the UK's largest insurer. It is a leading provider of life, pensions and investment products and one of the largest financial adviser (FA) providers. FAs provide over 70% of the company's long-term savings business in the UK.
 
Norwich Union's news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media.

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