Last year, one in 10 policies have been cancelled as per GlobalData, for customers, facing financial toughness.
UK customers are changing their expenditure habits and every one in out of 10 customers cancelled their travel and pet policies while facing uncertain expenditure crisis. Several measures were taken by the companies itself to avail customer ease this year.
Airlines or a holiday operator, let customer reopen a refund if their trips get disrupted.
The one in 10 survey gets uplifted in travel insurance by four in 10.
On an average 9% of customers cancelled their pet insurance policy, 4.8% of them did this for their how insurance, then also cancelled their cover 41% of customers cancelled their travelling policies from which 29% did it because of less travelling amidst COVID-19.
Therefore, 50% of consumers cancelled their pet policy to ease their rising expenses and earning shrinkage.
On this Benjamin Halton, analyst of GlobalData claimed – “ 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. Over 41% of consumers who cancelled their travel policy did so as a cost-saving measure. The COVID-19 pandemic also continues to affect consumers’ travel plans with 29% cancelling as they say they are travelling less frequently than before.
“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.”
The following analyzed study comprise of challenges faced by consumers by the fall in economy and urge for a need of pocket friendly insurance options. The study shows, more than half of UK workers are facing severe shrinkage to run their policies currently from last 12 months. People standing between the age of 18- 34 thrive to pay £500 in monthly expenditures.
