Research released by the Financial Conduct Authority (FCA) has revealed that up to 50% of financial service customers could be classified as vulnerable - even if they don't recognise this exposure themselves. And those who are 'vulnerable' are least likely to hold 'any form of insurance'. That equates to around 25.6 million people in the UK!
What Does the FCA Define as Vulnerable?
The Financial Conduct Authority has highlighted those who are at an increased risk of harm and those who would suffer disproportionately if harm occurred.
However, it is also clear that just because people have potential vulnerability, it does not mean all of these people are guaranteed to suffer as a result.
The FCA report states that:
"There is a careful balancing act to be achieved that involves the FCA, financial services firms and wider stakeholders to ensure that consumers when they are vulnerable are helped, protected and served better, and able to participate in mainstream markets."
Why Are Vulnerable People Not Taking Out Cover?
So, why are so many 'vulnerable' people not taking out insurance cover? Well, the study also found that there was a knowledge shortage. For example, 17 million adults did not know what 'no claims protection' meant and people were more likely to invest in insurance the older they got (when they have accumulated knowledge of the market).
55% of men and 59% of women aged 18-24 held a general insurance product, whereas 89% of 55-64 year olds had at least one policy.
Furthermore, 12 million people said they don't think they have enough information to make a decision on a policy based on quality and therefore would simply opt for the cheapest coverage policy.
How is Business Compare Tackling These Issues?
Our friendly team are here to make understanding, finding and taking out insurance cover quick and easy. They will provide you with all the options available and can advise you on the most suitable protection for your needs.
If you have any questions about what terms mean or what a policy will cover, our team are just a phone call away. Give us a call on 0333 202 6240 today.
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