In a new poll, consumers across 18 international markets were asked –if your household budget is squeezed as a result of increases in the cost of living, in which areas would you first make cutbacks? Over a tenth (13 per cent) of global consumers answered insurance policies or premiums. Although that’s bad news for the industry, it makes insurance one of areas of consumer spend most resistant to cost of living increases, with only healthcare costs less likely to be cut (nine per cent globally).
Australians, Germans and Spanish most likely to cut insurance costs
Drilling into the data by market, the highest numbers came from Australia (18 per cent). In Europe about one-fifth of consumers in Germany (18 per cent), Spain (16 per cent), and Italy (16 per cent) said that they would cut back on insurance policies if household budgets were squeezed. In comparison, the numbers were significantly less in Sweden (eight per cent) and Denmark (five per cent). Nearly one in 10 consumers from Britain and the US answered that they will look to cut back on this type of spending in the event of household budget limitations.
Breaking down the data according to region and age, we see that adults aged 18-24 (eight per cent) and 25-34 (nine per cent) from North American markets are less likely to cut back on insurance in comparison to those aged 45-55 (14 per cent).
Seventee per cent of adults aged 55+ from APAC countries say they are likely to reduce spending on insurance – the joint largest proportion in our analysis.
In the UAE, the scenario is reversed. About 10 per cent of those aged 55+ are likely to reduce their insurance spending in contrast to 17 per cent of consumers aged 18-24.