ABI targets low income households

A new report published by the Association of British Insurers (ABI), Access for All: extending the reach of insurance, has found that 35% of people in the lowest-income households (less than £10,000 per year) have no insurance at all and that they also need insurance most as they face higher risks from crime, fire and flooding.

The research found that 44% of people in the poorest households purchase home contents insurance, compared with nearly twice as many (82%) in those with average incomes (£15,000-£30,000). Around a third had motor insurance and only a quarter had purchased life insurance.

When people with low incomes and no insurance have to replace stolen or damaged household goods, around a third of them borrow additional funds, increasing their indebtedness.

The report also found that poorer households face