Welcome to the 2021, Pandemic Health & Protection Survey from Drewberry™, conducted by YouGov. We’ve collected data from 1,000 UK working adults, aged 25-64, and examined how Covid-19 has impacted the perceptions and attitudes towards the insurance industry, as well as towards peoples own finances.
It’s clear to see from the survey results that the pandemic has definitely made people think more about their finances, which is fantastic. However despite this, it seems still more can be done to help build trust and alleviate the concerns of UK adults who may be reluctant to put adequate financial protection in place.
In the 2018 Drewberry protection survey, we found that people:
Fast forward 3 years and it would appear that this misconception is still prevalent today.
How Covid-19 Has Affected People’s Finances
60% of people said that the pandemic has made them think more about their financial stability.
As a result of the pandemic, 56% of people said that they would be more likely to try and save each month.
63% of people have been able to save more during lockdown.
Of those who have been able to save, 59% said it was so they had a safety net for a rainy day.
Perceptions of Income Protection Post Pandemic
15% of people said they would be more likely to consider protecting their income since Covid-19.
Of the 856 people who said they wouldn’t be more likely to protect their income, 19% said it was because Income Protection is too expensive.
Nearly 1 in 5 (19%) said they wouldn’t consider protecting their income as they would rely on company sick pay.
15% said they wouldn’t protect their income as they didn’t think insurers would pay out.
Perceptions Of Critical Illness Post Pandemic
16% of people are more likely to consider Critical Illness Cover as a result of Covid-19.
74% of people think that the pandemic has increased the cost of Critical Illness Cover.
Perceptions Of Life Insurance Post Pandemic
18% of people said that Covid had made them more likely to purchase Life Insurance.
When it comes to the cost of Life Insurance, 68% of people think the pandemic has made it more expensive.
44% of people believe that insurers have paid less than 50% of Covid related Life Insurance claims.
More people are inclined to put a will in place, with 30% saying the pandemic has made them more likely to consider one.
Post Pandemic Perceptions of Health Insurance
13% of people say they are more likely to purchase Health Insurance as a result of the pandemic.
76% of people think the cost of Health Insurance has increased as a result of Covid-19.
Reduced waiting times top reason why people (38%) would be more likely to purchase Health Insurance.
22% of people more inclined to purchase Health Insurance if it gave them access to more flexible appointment times.
20% of people said that they would be more inclined to purchase Health Insurance if it would help reduce the strain on the NHS.
With access to a wider choice of consultants and surgeons, 19% of people would be more inclined to purchase Health Insurance.
To delve deeper into the statistics from our 2021 Protection survey, take a read through the major topics and look at the graphs below.
For most people lockdown has altered their relationship with money. Millions have found themselves having to tighten their belts due to being furloughed or losing their jobs, whilst others have had more money left in the bank at the end of each month than ever before.
60% of people said that the pandemic had made them think more about their own financial stability. With this in mind, it isn’t surprising that 56% of people also said that they would now be more likely to try and save each month.
With people thinking more about their savings, it is positive to see that as a result of the pandemic 63% of respondents have actually been able to save more each month.
The top reasons given for saving were:
With many individuals thinking more about their financial stability, we also found 1 in 6 people are more likely to consider their financial protection as a result of Covid-19.
In the last 12 months, more people purchased Pet Insurance than Income Protection, Life, Health or Critical Illness Insurance.
One reason that could go towards explaining people’s hesitations in purchasing the likes of Income Protection and Life Insurance, is the perceived cost of putting cover in place. When asked how the pandemic has affected the cost of protection products, the vast majority of people said they thought the cost of cover had increased.
Not only do people think that Covid-19 has increased the cost of protection, they also feel that it has affected the amount of claims that insurers are paying out. Nearly half (44%) of all respondents believed that insurers had paid out less than 50% of Covid related Life Insurance claims, a view which is far from reality.
Of the 856 who disagreed that the pandemic had made them more likely to consider protecting their income, 19% said it was because it was too expensive and 15% felt that insurers wouldn’t pay out claims.
As well as thinking more about financial stability, people are also thinking more about protecting their assets and loved ones. 30% of people agreed or strongly agreed that the pandemic had made them more likely to consider a will.
When it comes to Health Insurance, outside of the core cover it provides, there are a number of additional benefits which would make people more inclined to take out a policy. The top three reasons given were:
The pandemic has clearly left people thinking more about their own financial stability. With regards to financial protection there is still more we can do to help alleviate concerns and build trust with those who need protecting.
Misconceptions about the cost of protection and the belief that insurers don’t pay out claims are not helping our cause in getting more of the UK adequately protected. It also highlights that as an industry more needs to be done to un-muddy the water when it comes to the reality of pricing and the percentage of claims paid out.
I’ve held a policy with Drewberry for several years now. They are always friendly, insightful and offer great service.