Online Protection Providers Increasingly Popular Says British Insurance

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Internet sales of short-term income protection policies have increased by 10% in six months*, confirming consumers’ growing confidence in this distribution channel, reports provider British Insurance.

In a recent survey**, the firm revealed the internet was becoming more popular with purchasers of this cover. Within a year online providers moved from fifth to second place, behind High Street lenders.

British Insurance believes lenders’ popularity will not last - it found 10% fewer respondents opted for this distribution channel. In contrast, advocates of the internet increased by 45%.

Independent Financial Advisers also take second place, however their position looks equally unstable following Association of British Insurers’ research which suggested two-thirds of consumers were unwilling to pay directly for financial advice.

In a bid to counter concerns over consumers buying products that are ‘non-advised’, the Financial Services Authority confirms it has made clear all insurance providers must have in place processes to ensure products reach the right customers, which reduces the risk of mis-selling.

British Insurance Managing Director, Nel Mooy, comments: “Internet providers will continue to increase in popularity amongst consumers - we have a vital role in making financial services products easier to understand, accessible and more affordable for all.

“By sourcing cover online, consumers can learn about the protection products on offer before they buy, compare benefits and prices, consider whether they’re suitable for their circumstances and make an informed decision without feeling pressurised.”

This viewpoint is supported by Andrew Hagger from personal finance comparison site, Moneynet: “The internet is a great educator and information tool – it allows people to research and find out the pros and cons of protection products and how they can help them if they lose their income due to sickness or redundancy. This not only supports the Government’s call for greater financial education, but hopefully will see fewer people fall into debt and become reliant on State Benefits in the future.”

To find out more about short-term Income Protection visit http://www.britishinsurance.com For personal finance comparisons visit http://www.moneynet.co.uk

Note to Editors

  • April 11 – September 11 short-term income protection sales figures. Increase over six month period of 9.62% - rounded up.

** Survey undertaken by TNS Omnibus - 676 16-64 year-old full or part-time workers were questioned online from 6 – 10 October 2011.

British Insurance is a widely-recognised consumer champion and one of the UK’s leading independent providers of Payment Protection Insurance.

British Insurance has a Linked In profile at http://www.linkedin.com/company/british-insurance and can be followed on Twitter at Twitter: @britishins

British Insurance is a trading name of Towergate Underwriting Group Limited who are authorised and regulated by the Financial Services Authority.

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Francesca Breeze

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