New figures from Swiss Re Life & Health estimate a £130bn shortfall in income protection (IP) insu...
New figures from Swiss Re Life & Health estimate a £130bn shortfall in income protection (IP) insurance among UK con- sumers. The findings support research published by the reinsurer at the end of 2002, which showed a massive under provision of basic life assurance among UK consumers.
The gap in cover represents the difference between the level of IP cover held by UK consumers and the amount of insurance that should be in force throughout the working population. This figure suggests only 20% of the working population are covered by IP.
The figure has been calc- ulated on the assumption that consumers should insure 60% of the first £50,000 of their income, with those earning over this amount insuring 25% of any income between £50,000 and £200,000. Approx imately £4,000 per annum is then deducted from the figure to take into account incapacity benefit, paid by the State.
Alan Tyler, health and welfare strategy manager at Swiss Re said: 'Consumers are woefully under protected. It is in the best interests of the Government and the life and health industry that people are made more aware of the need to provide for themselves and the consequences of not doing so.'
