More than a third of the poorest households in Britain have no insurance at all, a new report has warned.
It also found that just 44% of people in low income households (those earning less than £10,000 a year) buy home contents insurance, while only 25% have life insurance.
But the Association of British Insurers (ABI), which produced the report, has warned that these households need insurance most as they face higher risks from crime, fire and flooding than their more affluent neighbours.
The report claims that:
- households with an income below £5,000 are 71% more likely to be burgled at least once compared with households with incomes of £30,000 or more
- arson rates are up to 30 times higher in the most deprived communities
- people with the lowest incomes are also much more vulnerable to flooding.
The ABI plans to launch a campaign early next year to promote greater take-up of insurance among people on lower incomes.
Stephen Haddrill, Director General of the ABI, said: ‘The poor are least able to deal with financial loss and depend most on insurance. We need to address the issue of low take-up in low-income groups. A lack of spare cash is the biggest factor holding back the purchase of insurance by lower income households.’