Has The Pandemic Impacted The Way UK Adults See Financial Protection? A Drewberry™ 2021 Survey

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26-03-2021

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.

Has The Pandemic Changed People’s Perception Of Financial Protection?

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:

  • Significantly overestimated the cost of insurance and
  • Believed that a large amount of claims didn’t get paid out.

Fast forward 3 years and it would appear that this misconception is still prevalent today.

Key Findings

  • More people are thinking about their finances
    60% of respondents agreed that the pandemic has made them think more about their financial stability and 56% said that they were more likely to put money into savings each month. 
  • Millennials more concerned about financial stability
    There was a heavy correlation between age and whether people were more likely to consider financial stability. 52% of 25-30 year olds said they would be more likely to think about their finances now vs only 39% of 60-65 year olds.
  • People are saving for a rainy day
    63% of respondents said that they had been able to save more during the pandemic, 59% of which said they were saving so they had a safety net for a rainy day.
  • Pets are our priority
    Despite the pandemic, in the last 12 months more people have purchased pet insurance than Health, Life, Critical Illness or Income Protection Insurance. 
  • 1 in 6 more likely to consider Life Insurance as a result of the pandemic
    Other protection products including Income Protection and Private Health Insurance saw a similar positive response.
  • Covid-19 has increased the perceived cost of protection
    The majority of respondents thought that the cost of Critical Illness Insurance (74%), Income Protection (75%), Life Insurance (68%) and Health Insurance (76%) will have increased as a result of the pandemic.
  • People don’t believe insurers pay out
    44% of people believe that insurers have paid out less than 50% of Covid-19 related Life Insurance claims.
  • More people are considering a will
    30% of people are more likely to consider a will because of the pandemic.
  • 1 in 5 people more inclined to buy Health Insurance if it would reduce strain on NHS
    20% of people said that reducing strain on the NHS would make them more inclined to buy Health Insurance.
top employee benefit 2021 statistics

Top Stories From Our Survey


📥 Infographic

How Has COVID-19 Impacted People’s Opinions Of Insurance And Their Finances?

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.

All Our Q1, 2021 Protection Statistics in Detail…

To delve deeper into the statistics from our 2021 Protection survey, take a read through the major topics and look at the graphs below.

Has Lockdown Changed People’s Views Towards Their Finances?

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.

Views Towards Financial Stability

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.

Has Lockdown Helped People To save?

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:

  •  Safety net for a rainy day (59%)
  • Loss of job (25%)
  • House renovations (24%)

 

Are People More Likely To Protect Themselves Post Pandemic?

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.

  • 15% more likely to purchase Income Protection
  • 16% more likely to purchase Critical Illness
  • 18% more likely to purchase Life Insurance
  • 13% more likely to purchase Health Insurance.

What Insurance Have People Purchased In The Last 12 Months?

In the last 12 months, more people purchased Pet Insurance than Income Protection, Life, Health or Critical Illness Insurance.

Has The Pandemic Changed Perceptions Of 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.

Do Insurers Pay Out Claims?

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.

Why Aren’t People Protecting Their Income?

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.

Are People More Likely To Purchase A Will Since Covid-19?

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.

Top Reasons UK Adults Would Consider Buying Health Insurance

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:

  • Reduced waiting times (38%),
  • More flexible appointment times (22%)
  • Reduce strain on the NHS (20%)

In Summary…

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.

Share Our Survey Results

Very good service from Rauri – he has been very helpful and thorough.

Kathryn Wright
16/05/2021
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