Benefit shortfalls key for consumers - Syndicate

Consumers increasingly appreciate the need for protection insurance when they are told about the limitations of state benefits, new research has found.

However the study found more than 70% of people still believe the state should support them in the event of suffering a long term disability or illness.

It also revealed that four in ten consumers (40%) have never through about buying critical illness (CI) or income protection (IP).

The research is part of the first report launched by The Syndicate, which interviewed 1,000 adults about their financial decision making and awareness of protection insurance products.

Encouragingly for the industry, 41% of respondents said the best way for them to appreciate the need for protection insurance was to increase the awareness of state benefit limits.

And this was reinforced by a third (32%) acknowledging that they wanted the industry to reassure them of the benefits of protection insurance and a similar number (29%) requesting greater media coverage of the industry's benefits.

This is particularly crucial given the government's continuing welfare reform programme which may not match public expectations, as more than 70% said they expected the state to look after them if they suffered disability or illness.

Stuart Paton Evans, general manager of business development at Hannover Life Re, presented the findings and admitted that while there were some positive aspects for the industry, it also included some worrying results.

"It's disappointing for the industry that the research shows how many people have never looked into buying any of the products, and that's just too great a proportion," he said.

"And there's an awful lot we still need to do to bridge those gaps.

"But those people who are aware and have purchased are looking into their situation.

"They are coming around to the fact that the state is not always going to be there to support them," he added.