A report released earlier this week by the Financial Inclusion Commission highlighted that 16 million people in the UK do not have contents insurance, even though many do not have enough savings to replace their possessions.
The report identifies that the reasons for this gap are complex and varied, from problems with affordability for those on low incomes, to difficulties with understanding the information provided by insurers. Younger people in particular are unlikely to have contents cover; the report highlights the FCA’s finding that 81% of “Generation Rent” are without insurance for their contents.
Given the varied causes of the problem, the Commission does not suggest just one solution but 4:
- Increasing access to contents insurance coverage for both social tenants and private tenants;
- Providing better access to household insurance for other groups who are not well served by the mainstream market;
- Increasing the profile and understanding of household insurance as part of a wider financial inclusion agenda; and
- A collaborative approach with Government, regulators, insurers and others, with the former to take overall responsibility through a national strategy
The report is available here. The Financial Inclusion Commission is a cross-party campaigning body of Members of Parliament, Peers, social-policy leaders and industry experts.