Abstract
Finaccord' s report titled Creditor Metrics: Consumer Approaches to Payment
Protection Insurance linked to Personal Loans and Consumer Credit 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 personal loans, consumer
credit contracts or car finance or leasing agreements (hereafter referred to
as non-mortgage loans) 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 Italy are least likely to have insured their loan payments in
some shape or form
- when asked whether they possess one or more insurance policies that
protects them in the event that they cannot pay their loan, consumers in
France are most likely to do so with 67.1% of borrowers claiming to hold
insurance as opposed to a low of 35.9% in Italy and intermediate data points
of 60.3%, 39.8% and 44.0% 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 loan 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 loan payments;
- among borrowers who consider that their non-mortgage loan 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 just 10.5%, over 20% of respondents lacking insurance do so
purely because they have not yet got round to buying a policy to protect their
non-mortgage loan payments rather than because they have any fundamental
objection;
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