Cost of cover biggest worry reports AXA’s Big Money Index

The latest Big Money Index from AXA reveals that cost not cover is the biggest concern for consumers and that they continue to have a very negative view towards the UK’s slide into a compensation culture.

16 March 2012

Posted in Financial results

by Jennifer Chilcott (see media contact)

> Download the AXA Big Money IndexReport Q4 2011

Twenty seven per cent of consumers agree that they are more concerned with the cost than the level of insurance cover, which includes 40 per cent of The Stretched and 41 per cent of Young Professionals. Ten per cent of the former segment agreed that they would rather 'take the risk' rather than spend the money on insurance cover while the number of consumers agreeing that they may consider getting rid of their car because of the rising cost of motoring remained the same.

Those who buy travel insurance tend to do so for the medical cover and expenses: 80 per cent cite medical cover and medical expenses as a critical feature when choosing insurance, followed by 63% who cite legal protection as a critical feature and 61 per cent who cite cancellation/curtailment cover as a critical feature.

British consumers have strong opinions when it comes to insurance ownership and making claims: more than eight in 10 (85 per cent) agreed punishments as they stand are not tough enough to act as a deterrent to uninsured drivers. Moreover, 88 per cent agreed that they disliked the increasing claims culture and the marketing that is fuelling it. Indeed, 67 per cent agreed that it was too easy to get personal injury compensation.

Nick Turner, Managing Director of Intermediary and Partnerships at AXA Personal Lines said: "A clear pattern has emerged in the last four quarters of our BMI research that finances are, perhaps unsurprisingly, more stretched than ever. We are the UK's largest travel underwriter so it was particularly interesting to see the research regarding travel insurance. With personal injury claims now very much in the public consciousness following the Government 'insurance summit' in February it will be fascinating to note how attitudes to this issue change over time."