Abstract
Finaccord' s report titled Creditor Metrics: Consumer Approaches to Payment
Protection Insurance linked to Mortgages in Europe, is based on a survey,
carried out by Internet and telephone, of over 6,500 consumers in five major
European markets, all of whom possess at least one of a mortgage, a personal
loan, consumer credit contract, car finance or leasing agreement, or credit
card.
It provides data and analysis that will help banking institutions, insurance
companies and other interested parties to understand the overall
characteristics of the market for insurance linked to mortgages and to
benchmark their own performance in cross-selling these products. The following
are some of the key findings from the report, published on 20th August 2006:
Borrowers in France are most likely to have taken out some form of mortgage
insurance
- when asked whether they possess one or more insurance policies that
protects them in the event that they cannot pay their mortgage, consumers in
France are most likely to do so with 81.6% of borrowers claiming to hold
insurance as opposed to a low of 49.2% in Italy and intermediate data points
of 70.1%, 54.6% and 70.5% in Germany, Spain and the UK, respectively;
- in essence, these figures represent the percentage of respondents that has
made a conscious decision to protect their mortgage through an insurance
policy - however, it probably excludes a number of respondents who hold an
insurance policy oriented towards personal protection (eg. life insurance) but
who do not consider that this is specifically covering their mortgage payments;
- among borrowers who consider that their mortgage is uninsured, those in
France, Germany and the UK are most likely to state that they see the benefit
but find the insurance to be too expensive whereas their counterparts in Italy
and Spain are more likely to respond that they see the benefit but have not
yet got round to buying insurance;
- indeed, a key finding is that with the exception of the UK, where the
percentage is 15.5%, over 25% of respondents lacking insurance in the other
countries do so purely because they have not yet got round to buying a policy
to protect their mortgage payments rather than because they have any
fundamental objection.
| 
View Cart
