The ‘squeeze on living standards’ in the UK is causing consumers to change their spending habits, says insurance analyst
More than 11% of travel insurance customers cancelled their insurance policy over the past 12 months to mitigate the impacts of the UK’s cost of living crisis, GlobalData’s 2022 UK Insurance Consumer Survey revealed.
Published today (8 November 2022),the survey further highlighted that 9% of pet insurance customers and 4.8% of home insurance customers have also cancelled their cover.
Over 41% of consumers who cancelled their travel policy did so as a cost-saving measure – compared to 29% who said it was a result of travelling less frequently following the Covid-19 pandemic.
On the other hand, 50% of pet insurance holders cancelled their policy to reduce costs, with 10.2% stating inflation was the main cause.
Home cancellations
GlobalData’s insurance analyst Benjamin Hatton said that “the squeeze on living standards in the UK is forcing many consumers to alter their spending habits as the cost of living crisis continues to bite”.
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He added: “For home insurance cancellations, the most frequently cited reason was again to cut costs, with 44.4% of respondents giving this reason.
“As home working has remained a significant trend since the onset of the pandemic, some consumers are cancelling home insurance policies in response to spending more time at home – 17.9% of respondents who cancelled gave this factor as a reason for the decision.”
GlobalData surveyed 4,018 respondents during Q3 2022.
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