Brits 'would cut back on financial products'

By Sarah Engle, Mon 15 Sep 2008 - Published in Banking

American Express Insurance Services has claimed that UK savers could cut back on financial products to save money.

The firm surveyed more than 2,000 people on the products they would stop paying for if cost of living were to increase and discovered that 44 per cent would reduce payments to family savings plans.

Some 32 per cent of people reported they would stop ID theft protection, 30 per cent would lose payment protection insurance and 27 per cent would avoid health insurance.

In addition, travel insurance would be abandoned by 24 per cent, regular additions to child trust funds reduced by 14 per cent and 17 per cent would cancel their pet insurance.

However, just two per cent would cut back on car insurance and three per cent on their home insurance.

Chris Rolland, head of American Express Insurance Services, said: "Life may be getting more expensive, but it is worrying that 48 per cent of Brits are planning to cut back on the policies that are designed to protect them during hard times."

Last week, the Association of British Insurers reminded people that products such as protection and life insurance are more valuable during the current economic climate, as later needing the cover and not having it could be more damaging to finances.

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