New research from Affinion International and the Direct Marketing Association has revealed significant differences in UK consumers’ habits and the banking, insurance and added value products they hold.
The newly released research, conducted as part of the seventh annual Financial Services Tracker, shows:
– Women are more likely to take out gadget insurance than men (55% vs 45%)
– Women are also more likely than men to hold breakdown cover (53% vs 47%)
– Men are more likely than women to use a credit management product (57% vs 43%)
The Tracker also revealed some surprising regional differences in the approach UK consumers take to protecting their possessions.
– Nationally, 44% of adults hold motor breakdown cover, yet only 33% of those living in the North East of England do. People in the South East are the most likely (48%) to take out breakdown cover
– People in Northern Ireland are particularly cautious when travelling – 42% hold travel insurance, against a national average of 27%
– One in five Londoners (21%) holds mobile phone insurance against a national average of 14%
– East Anglian’s are best equipped to deal with a broken tablet or e-reader, 7% hold gadget insurance, something only 2% of those living in the West Country do, with the national average 5%
In addition to looking at gender and regional differences, the survey also examined who consumers hold their products with. Although 50% of people hold some form of ‘core’ secondary product (such as a savings account) with their main bank and 25% of people have a cash ISA with their main bank , the major institutions have ground to make up to specialist providers in other areas. Only 37% of people hold a ‘non-core’ product, such as travel insurance, through their main bank, showing that consumers are now well used to shopping around for what they feel is the best deal.
Commenting on the findings, Giles Desforges, Affinion’s Senior Vice President for Northern Europe, said: “The research highlights clear variations in the importance that consumers in the UK place on insuring key aspects of their lives, whether that’s their car, their smartphone, or their belongings on holiday”. He continued: “It also tells us that it is vital for banks to offer products that customers want and need, because consumers who hold added value products, such as travel insurance, with their banks are most likely to recommend that institution to their friends and family.”
