Three-quarters of a million low income consumers will get access to affordable home insurance if an Association of British Insurers’ financial inclusion initiative makes its mark.
The Association of British Insurers‘ campaign, which is being run in conjunction with insurer Aviva and insurance broker Aon, is designed to help the 750,000 people living in local authority or social housing in London. According to the ABI, Londoners are the least likely to have contents cover despite being more vulnerable to arson and burglary than anywhere else in the UK.
Social landlords targeted in insurance scheme
The schemes will be offered by social landlord to tenants who require a low cost means to covering their possessions. Nick Starling, director for general insurance and health at the ABI, said: ‘Many low-income Londoners struggle to access basic financial products, such as contents insurance. This makes it difficult for them to plan for the future, and leaves them at the mercy of unwelcome events, such as burglary. Helping landlords provide tenants insurance will ensure that many unprotected and vulnerable Londoners have the financial protection they need.’
Insurance scheme to be expanded to other cities
The London project is the latest in a series of such initiatives, the most recent helping the people of Manchester. The ABI confirmed that future insurance financial inclusion projects are planned for Birmingham and Cardiff. In all cases, local authorities will be encouraged to participate.
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