Pro-active advertising required to forewarn consumers of adequate insurance cover
By Peter Carvill
Providers overwhelmingly believe steps should be taken to advertise the differences between payment protection insurance (PPI) and income protection (IP), according to a new survey.
A LifeSearch survey showed that 94% of insurers believe this needs to happen quickly.
Matt Morris, PR manager for LifeSearch, said: "It shows that something needs to be done to make consumers aware they don't have the same level of protection they sometimes believe. IP is much more comprehensive and sometimes cheaper too, yet consumers still continue to buy PPI."
The survey results followed the remarks of Tom Baigrie, managing director of LifeSearch, at the company's annual awards ceremony at the end of February where he called for a concerted cross-industry effort to promote the dangers of not having protection.
He said: "Their income and debt and need for cover has risen, but overall they buy less and less no matter the price. That's why we last year called for the Association of British Insurers (ABI) and providers to spend on advertising. The ABI, with its almost comical ability to back the wrong horse, said 'no' but Norwich Union, Axa and Zurich are having a go."
The UK's protection gap is estimated by Swiss Re to be £2.3trn.
