Hanover Re and Protection Review’s research found the financial crisis made people aware of the need for protection. However, most people are yet to take action.
The report, titled An Uncertain Future, is based on a research conducted in April and shows a quantum leap in the number of people keen to protect their health and income.
The research found 49 percent people gave more priority to protection since the financial downturn compare to just 22 percent in 2010.
More than half (54 percent) of the respondents said they will depend on savings if they lost their job, while 46 percent will depend on a partner. 36 percent said they will take state benefit while just 19 percent said they will rely on protection products.
The research shows more people have unrealistic perceptions of surviving without a steady income, said Stuart Paton Evans, general manager of business development at Hannover Life Re.
“The reliance on state benefits has decreased which points to people picking up on austerity messages from the government. However for the life insurance industry, this has yet to have a positive impact on sales of protection insurance”, said Evans.
“People are aware of the need for adequate protection but they are still failing to translate this awareness into action”, he added.
“It does not surprise me at all because advisers now want to be investment new model advisers with funds under management, and protection has been forgotten about. As IFAs we need to take a long hard look out ourselves. We still do a fair bit of protection but not enough”, said Max Horne, partner of Max Horne Financial Services.