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SUMMARY
Finaccord's report titled Creditor Metrics: Consumer Approaches to Payment
Protection Insurance linked to Personal Loans and Consumer Credit in Europe,
is based on a survey, carried out by Internet and telephone, of over 6,500
consumers in five major European markets, all of whom possess at least one of
a mortgage, a personal loan, consumer credit contract, car finance or leasing
agreement, or credit card
It provides data and analysis that will help banking institutions, insurance
companies and other interested parties to understand the overall
characteristics of the market for insurance linked to personal loans, consumer
credit contracts or car finance or leasing agreements (hereafter referred to
as non-mortgage loans) and to benchmark their own performance in cross-selling
these products. The following are some of the key findings from the report,
published on 20th August 2006:
Borrowers in Italy are least likely to have insured their loan payments in
some shape or form
- when asked whether they possess one or more insurance policies that
protects them in the event that they cannot pay their loan, consumers in
France are most likely to do so with 67.1% of borrowers claiming to hold
insurance as opposed to a low of 35.9% in Italy and intermediate data points
of 60.3%, 39.8% and 44.0% in Germany, Spain and the UK, respectively;
- in essence, these figures represent the percentage of respondents that has
made a conscious decision to protect their loan through an insurance policy -
however, it probably excludes a number of respondents who hold an insurance
policy oriented towards personal protection (eg. life insurance) but who do
not consider that this is specifically covering their loan payments;
- among borrowers who consider that their non-mortgage loan is uninsured,
those in France, Germany and the UK are most likely to state that they see the
benefit but find the insurance to be too expensive whereas their counterparts
in Italy and Spain are more likely to respond that they see the benefit but
have not yet got round to buying insurance;
- indeed, a key finding is that with the exception of the UK, where the
percentage is just 10.5%, over 20% of respondents lacking insurance do so
purely because they have not yet got round to buying a policy to protect their
non-mortgage loan payments rather than because they have any fundamental
objection;
TABLE OF CONTENTS
0.0 EXECUTIVE SUMMARY
- Borrowers in Italy are least likely to have insured their loan payments in
some shape or form
- ... while those in Germany are most likely to use policies other than loan
payment insurance
- Cover in the event of temporary incapacity is most commonly purchased by
UK borrowers
- ... while protection for unemployment is least frequently held by their
counterparts in Italy
- German borrowers are most likely to acquire ins. from a source other than
the original lender
- ... and respondents in the UK are most inclined to utilise a remote
distribution interface
- The shorter duration of non-mortgage loans restricts the potential for
retrospective cross-selling
- UK borrowers express the least satisfaction with the ins. that they have
bought in this context
1.0 INTRODUCTION
- Finaccord
- European consumer research
- Creditor insurance
- Mobile telephone insurance
- Travel insurance
- European market, partnership and bancassurance research
- Research rationale
- Mainstream bancassurance markets are comparatively well documented
- ... whereas creditor insurance is not
- Creditor insurance: a poorly understood "third" bancassurance market?
- The Creditor Metrics series offers vital benchmarking data for lending
insts. and underwriters
- Research methodology
- The research embraces a total of over 6,250 respondents across the five
countries
- Research strengths and weaknesses
- A mixed Internet and telephone research methodology produces balanced
results
- ... that offer a representative picture of consumers with at least one
lending product
2.0 EUROPEAN OVERVIEW
- Introduction
- % of resps. holding a personal loan, consumer credit or car finance
contract
- Respondents in France and the UK are most likely to possess a non-mortgage
loan
- % of resps. with insurance that protects their non-mortgage loan payments
- Italian borrowers are least likely to have bought insurance to protect
loan payments
- Attitudes towards ins. protecting non-mort. loans of resps. without cover
- UK borrowers are most likely to perceive this form of insurance as being
too expensive
- Types of insurance used by resps. to protect non-mortgage loan payments
- Slightly over a third of insured borrowers in Germany use a loan payment
protection policy only
- Risks covered by ins. used by resps. to protect non-mort. loan payments
- Borrowers reporting cover for temporary incapacity are most numerous in
the UK
- ... while those in Italy are least likely to be have acquired protection
for unemployment
- Insurance used to protect non-mort. loan payments - distribution channels
- The distribution share of the original lenders is strongest in France
- Insurance used to protect non-mort. loan payments - distribution interfaces
- UK borrowers are most inclined to buy this form of insurance through a
remote interface
- Insurance used to protect non-mort. loan payments - point in time obtained
- Simultaneous sales of insurance to protect non-mortgage loans are highest
in France
- ... while the potential for re-solicitation is apparently highest in
Germany
- Attitudes towards insurance protecting non-mort. loans of resps. with cover
- Italian borrowers are most likely to express total satisfaction with this
form of insurance
3.0 FRANCE
- Introduction
- Research sample
- The research embraces a total of 1,232 respondents in France
- % of resps. holding a personal loan, consumer credit or car finance
contract
- % of resps. with insurance that protects their non-mortgage loan payments
- Attitudes towards insurance protecting loans of respondents without cover
- Types of insurance used by resps. to protect non-mortgage loan payments
- Risks covered by insurance used by respondents to protect loan payments
- Insurance used to protect non-mort. loan payments - distribution channels
- Insurance used to protect non-mort. loan payments - distribution interfaces
- Insurance used to protect non-mort. loan payments - point in time obtained
- Attitudes towards insurance protecting loans of respondents with cover
4.0 GERMANY
- Introduction
- Research sample
- The research embraces a total of 1,210 respondents in Germany
- % of resps. holding a personal loan, consumer credit or car finance
contract
- % of resps. with insurance that protects their non-mortgage loan payments
- Attitudes towards insurance protecting loans of respondents without cover
- Types of insurance used by resps. to protect non-mortgage loan payments
- Risks covered by insurance used by respondents to protect loan payments
- Insurance used to protect non-mort. loan payments - distribution channels
- Insurance used to protect non-mort. loan payments - distribution interfaces
- Insurance used to protect non-mort. loan payments - point in time obtained
- Attitudes towards insurance protecting loans of respondents with cover
5.0 ITALY
- Introduction
- Research sample
- The research embraces a total of 1,222 respondents in Italy
- % of resps. holding a personal loan, consumer credit or car finance
contract
- % of resps. with insurance that protects their non-mortgage loan payments
- Attitudes towards insurance protecting loans of respondents without cover
- Types of insurance used by resps. to protect non-mortgage loan payments
- Risks covered by insurance used by respondents to protect loan payments
- Insurance used to protect non-mort. loan payments - distribution channels
- Insurance used to protect non-mort. loan payments - distribution interfaces
- Insurance used to protect non-mort. loan payments - point in time obtained
- Attitudes towards insurance protecting loans of respondents with cover
6.0 SPAIN
- Introduction
- Research sample
- The research embraces a total of 1,250 respondents in Spain
- % of resps. holding a personal loan, consumer credit or car finance
contract
- % of resps. with insurance that protects their non-mortgage loan payments
- Attitudes towards insurance protecting loans of respondents without cover
- Types of insurance used by resps. to protect non-mortgage loan payments
- Risks covered by insurance used by respondents to protect loan payments
- Insurance used to protect non-mort. loan payments - distribution channels
- Insurance used to protect non-mort. loan payments - distribution interfaces
- Insurance used to protect non-mort. loan payments - point in time obtained
- Attitudes towards insurance protecting loans of respondents with cover
7.0 UNITED KINGDOM
- Introduction
- Research sample
- The research embraces a total of 1,340 respondents in the UK
- % of resps. holding a personal loan, consumer credit or car finance
contract
- % of resps. with insurance that protects their non-mortgage loan payments
- Attitudes towards insurance protecting loans of respondents without cover
- Types of insurance used by resps. to protect non-mortgage loan payments
- Risks covered by insurance used by respondents to protect loan payments
- Insurance used to protect non-mort. loan payments - distribution channels
- Insurance used to protect non-mort. loan payments - distribution interfaces
- Insurance used to protect non-mort. loan payments - point in time obtained
- Attitudes towards insurance protecting loans of respondents with cover
GRAPHICS / TABLES
- Sample breakdown across five European countries by age group
- Sample breakdown across five European countries by annual household income
- % of respondents in five European countries holding a pers. loan / cons.
cred., 2006
- % of resps. in five Euro. countries holding insurance that protects their
pers. loan / cons. cred. payments, 2006
- % split of attitudes towards ins. that protects mort. payments of resps.
in five Euro. countries without cover, 2006
- Types of insurance used by respondents in five Euro. countries to protect
pers. loan / cons. cred. payments, 2006
- Risks cov. by ins. used by resps. in five Euro. counts. to protect mort.
pays., 2006 (pen. among borrowers with ins.)
- Risks cov. by ins. used by resps. in five Euro. counts. to protect mort.
pays., 2006 (pen. among all borrowers)
- Dist. channels used by resps. in five Euro. counts. to obt. ins. used to
prot. pers. loan / cons. cred. payments, 2006
- Dist. interfaces used by resps. in five Eur. counts. to obt. ins. used to
protect pers. loan / cons. cred. payments, 2006
- Point in time chs. by resps. in five Euro. counts. to obt. ins. used to
prot. mortg. pays., 2006 (anal. for borrs. with ins.)
- Point in time chs. by resps. in five Euro. counts. to obt. ins. used to
prot. mortg. pays., 2006 (analysis for all borrs.)
- % split of attitudes towards ins. that protects mort. payments of resps.
in five European countries with cover, 2006
- Sample breakdown in France by age group, household income band and
geographical location
- % of respondents in France holding a pers. loan / cons. cred., 2006
- % of respondents in France holding insurance that protects their pers.
loan / cons. cred. payments, 2006
- % split of attitudes towards ins. that protects pers. loan / cons. cred.
pays. of resps. in France without cover, 2006
- Types of insurance used by respondents in France to protect pers. loan /
cons. cred. payments, 2006 (1)
- Types of insurance used by respondents in France to protect pers. loan /
cons. cred. payments, 2006 (2)
- Risks covered by insurance used by respondents in France to protect pers.
loan / cons. cred. payments, 2006
- Dist. channels used by resps. in France to obtain insurance used to
protect pers. loan / cons. cred. payments, 2006
- Dist. interfaces used by resps. in France to obtain insurance used to
protect pers. loan / cons. cred. payments, 2006
- Point in time chosen by resps. in France to obtain insurance used to
protect pers. loan / cons. cred. payments, 2006
- % split of attitudes towards insu. that protects pers. loan / cons. cred.
payments of resps. in France with cover, 2006
- Sample breakdown in Germany by age group, household income band and
geographical location
- % of respondents in Germany holding a pers. loan / cons. cred., 2006
- % of respondents in Germany holding insurance that protects their pers.
loan / cons. cred. payments, 2006
- % split of attitudes towards ins. that protects pers. loan / cons. cred.
pays. of resps. in Germany without cover, 2006
- Types of insurance used by respondents in Germany to protect pers. loan /
cons. cred. payments, 2006 (1)
- Types of insurance used by respondents in Germany to protect pers. loan /
cons. cred. payments, 2006 (2)
- Risks covered by insurance used by respondents in Germany to protect pers.
loan / cons. cred. payments, 2006
- Dist. channels used by resps. in Germany to obtain ins. used to protect
pers. loan / cons. cred. payments, 2006
- Dist. interfaces used by resps. in Germany to obtain ins. used to protect
pers. loan / cons. cred. payments, 2006
- Point in time chosen by resps. in Germany to obtain ins. used to protect
pers. loan / cons. cred. payments, 2006
- % split of attitudes towards ins. that protects pers. loan / cons. cred.
pays. of resps. in Germany with cover, 2006
- Sample breakdown in Italy by age group, household income band and
geographical location
- % of respondents in Italy holding a pers. loan / cons. cred., 2006
- % of respondents in Italy holding insurance that protects their pers. loan
/ cons. cred. payments, 2006
- % split of attitudes towards ins. that protects pers. loan / cons. cred.
payments of resps. in Italy without cover, 2006
- Types of insurance used by respondents in Italy to protect pers. loan /
cons. cred. payments, 2006 (1)
- Types of insurance used by respondents in Italy to protect pers. loan /
cons. cred. payments, 2006 (2)
- Risks covered by insurance used by respondents in Italy to protect pers.
loan / cons. cred. payments, 2006
- Distr. channels used by resps. in Italy to obtain insurance used to
protect pers. loan / cons. cred. payments, 2006
- Dist. interfaces used by resps. in Italy to obtain insurance used to
protect pers. loan / cons. cred. payments, 2006
- Point in time chosen by respondents in Italy to obtain ins. used to
protect pers. loan / cons. cred. payments, 2006
- % split of attitudes towards ins. that protects pers. loan / cons. cred.
payments of resps. in Italy with cover, 2006
- Sample breakdown in Spain by age group, household income band and
geographical location
- % of respondents in Spain holding a pers. loan / cons. cred., 2006
- % of respondents in Spain holding insurance that protects their pers. loan
/ cons. cred. payments, 2006
- % split of attitudes towards ins. that protects pers. loan / cons. cred.
payments of resps. in Spain without cover, 2006
- Types of insurance used by respondents in Spain to protect pers. loan /
cons. cred. payments, 2006 (1)
- Types of insurance used by respondents in Spain to protect pers. loan /
cons. cred. payments, 2006 (2)
- Risks covered by insurance used by respondents in Spain to protect pers.
loan / cons. cred. payments, 2006
- Dist. channels used by resps. in Spain to obtain insurance used to protect
pers. loan / cons. cred. payments, 2006
- Dist. interfaces used by resps. in Spain to obtain insurance used to
protect pers. loan / cons. cred. payments, 2006
- Point in time chosen by respondents in Spain to obtain ins. used to
protect pers. loan / cons. cred. payments, 2006
- % split of attitudes towards ins. that protects pers. loan / cons. cred.
payments of resps. in Spain with cover, 2006
- Sample breakdown in the UK by age group, household income band and
geographical location
- % of respondents in the UK holding a pers. loan / cons. cred., 2006
- % of respondents in the UK holding insurance that protects their pers.
loan / cons. cred. payments, 2006
- % split of attitudes towards ins. that protects pers. loan / cons. cred.
pays. of resps. in the UK without cover, 2006
- Types of insurance used by respondents in the UK to protect pers. loan /
cons. cred. payments, 2006 (1)
- Types of insurance used by respondents in the UK to protect pers. loan /
cons. cred. payments, 2006 (2)
- Risks covered by insurance used by respondents in the UK to protect pers.
loan / cons. cred. payments, 2006
- Dist. channels used by resps. in the UK to obtain ins. used to protect
pers. loan / cons. cred. payments, 2006
- Dist. interfaces used by resps. in the UK to obtain ins. used to protect
pers. loan / cons. cred. payments, 2006
- Point in time chosen by resps. in the UK to obtain ins. used to protect
pers. loan / cons. cred. payments, 2006
- % split of attitudes towards ins. that protects pers. loan / cons. cred.
payments of resps. in the UK with cover, 2006
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