FCA urged to investigate insurance 'poverty premium'

Within Social Market Foundation report

John Brazier
clock • 3 min read

A new report from the Social Market Foundation (SMF) has urged the Financial Conduct Authority (FCA) to investigate the challenges families in poverty face when paying insurance premiums.

The Insurance and the Poverty Premium report, published on 12 March, surveyed 1,537 adults in June last year in the UK living in households with equivalised low income below 60% of median. Assessing responses to a range of insurance products, including life insurance, SMF over half (55%) of people living in poverty are struggling to afford the price of premiums amid the cost of living crisis. As insurance becomes increasingly unaffordable, more people are facing a ‘poverty premium' meaning they face higher prices due to factors beyond their control and are more likely to cancel cover ...

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