Access to Insurance
Last updated:
04/12/2009 09:51
Insurance companies protect millions of people against potentially devastating risks. Hazards like flood, fire and burglary cause great damage and loss, and the consequences of not being insured can be overwhelming. Unfortunately, some of the most vulnerable people in society are often the ones who are least likely to have insurance cover, and who therefore struggle to recover financially when things go wrong.
Insurers are committed to helping people access the cover they need; we are undertaking a programme of promotional and educational activity with the Government, charities and other organisations to achieve this. Our initial focus is on improving access to home contents insurance (HCI) among social tenants.
This section of the ABI site contains information on HCI for social landlords and their tenants. It will be expanded over time to include information on other areas of financial inclusion.
Background
Many people, particularly those living on low incomes, cannot access mainstream financial products such as bank accounts and low cost loans. Financial exclusion imposes real costs on individuals and their families. It also has costs for the communities in which they live.
Households that operate solely on a cash budget are unable to make savings via direct debits on utility bills, are more vulnerable to loss or theft, and are far more likely to use the alternative credit market - and pay interest many times that of a standard personal loan, often contributing to spiralling debt. In addition, for those who do get into debt or who struggle to make payments, the supply of free face-to-face money advice falls far short of demand.
The Government is committed to tackling financial exclusion. Much of its focus to date has been on improving access to banking, affordable credit and free face-to-face money advice.
However, in 2007 it announced its intention to widen the scope of its efforts to insurance products. Access to insurance is key to financial inclusion: when things go wrong, insurance can help people get back on their feet quickly without incurring further debt.
The insurance industry is committed to improving financial inclusion. Accordingly, via the Association of British Insurers, the industry has set up an Access to Insurance Working Group.
The Working Group’s initial focus is on improving social tenants’ access to home contents insurance, although it will consider other issues later in the year.
Explore this section:
Information for Tenants
Information for Landlords
Information for Other Stakeholders