Findings from GlobalData’s 2020 UK Insurance Consumer Survey indicate that the leading financial concern among consumers is saving for a comfortable retirement, with 16% of respondents identifying this as their main financial concern. Evidently this is an opportunity for the insurance industry to highlight its expertise in the pension space, as well as other markets where products offer financial protection.
Given the current economic climate, individuals will undoubtedly be concerned about their ability to save for retirement. For many consumers, financial pressures in the near term will have been increasing as a result of the COVID-19 pandemic, thus impacting their ability to plan for their longer-term financial situation. According to the survey, individuals are currently placing greater focus on their ability to meet shorter-term financial obligations, with one in 10 respondents citing paying monthly bills or paying their mortgage/rent as their top financial concern.
All of these concerns create potential opportunities for the insurance industry to engage with individuals, as in many cases there are relevant insurance products which may help relieve the stress associated with these financial commitments or concerns.
The insurance industry is well established in the pension market. Yet given the concerns of consumers, arguably more could be done to engage with them in an effort to allay their financial concerns and highlight how they can work towards achieving a comfortable retirement.
The income protection market is a clear area that could benefit consumers, given their financial concerns. Products designed to help should individuals be unable to work – because of accident, illness, or in some cases redundancy – will help relive financial strains associated with day-to-day living. Some products even offer payments that are specifically linked to mortgages. The insurance industry should look to highlighting the benefit of such policies, particularly given that the COVID-19 pandemic has led to many individuals becoming increasingly aware of their financial vulnerability to any sudden change in their income.