A survey by the UK Financial Services Authority has revealed that, while almost 70% of UK consumers shop around to get the best deal on household gadgets such as televisions, only 43% bother to compare deals on life insurance.
<p>The survey, conducted by BMRB Omnibus in February 2007, also revealed that 69% of UK consumers hate shopping for insurance, while 52% commented that they found it too difficult to compare the insurance products available on the market. The research also showed that 46% are not sure if they are actually getting a good deal. <br /><br />The Financial Services Authority (FSA) commissioned the research with a view to establishing five questions that would aid consumers in purchasing the right insurance product for their needs. The watchdog commented that, in devising the questions, a number of worrying trends emerged. <br /><br />When questioned about whether they were covered already, 49% of those consulted said they never quite know what they are covered for, and 52% rarely, if ever, check their life insurance policy details to make sure it provides them with adequate cover. Furthermore, 25% thought that they had to buy the travel insurance offered when purchasing a holiday from a travel agent, when in fact they can shop around.<br /><br />The watchdog added that, while 52% of those consulted assumed that insurance companies would make it difficult to get a claim settled, consumers have a responsibility to give their full details, because the deal they make with the insurer is based on the information they have provided.<br /><br />Vernon Everitt, director of retail themes at the FSA, said: Insurance plays an important part in protecting our families, homes and possessions. But, as with all financial products, consumers need to be capable and confident in making the right choices, including shopping around for the best deal and asking the right questions.</p>