The British Insurance Brokers’ Association (BIBA) has warned consumers to seek professional insurance advice following research that reveals that consumers are reducing their insurance cover as a result of the recession, with home and motor insurance affected the most.

BIBA is concerned that if consumers cut insurance protection without guidance from an insurance broker, homeowners and motorists could be exposed to financial risk if they suffer a fire, burglary or have their car stolen or damaged.

Key findings of the research, to be launched at BIBA’s conference in Manchester on Thursday, include:

• More than one fifth (23%) of brokers surveyed have seen their personal lines customers reduce their level of insurance protection during the recession.

• Examples of reduction in personal lines cover included:

-          29% of brokers have seen a reduction in non-essential cover and “add-ons” for personal lines business.

-          16% of brokers have seen personal lines clients reducing sums insured

-          16% of brokers have seen personal lines clients increase excesses  

• When asked which classes of personal lines insurance are most affected, 96% said motor or home.

Eric Galbraith, BIBA Chief Executive, said: “I am concerned that families are putting themselves at financial risk by reducing insurance. 

“Cutting out the wrong part of your insurance protection could be a costly mistake. Professional advice from a broker on a tailored insurance programme is the only way to achieve a cost effective solution.”

To find an insurance broker, consumers can use the BIBA ‘Find a Broker’ helpline on 0870 950 1790 or www.biba.org.uk

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Notes to editors

1. For further information please contact :

BIBA press office:
Leighann Burtrand, Communications Manager
020 7397 0223
burtrandl@biba.org.uk

2. About British Insurance Brokers' Association

The British Insurance Brokers’ Association (BIBA) is the UK’s leading general insurance organisation representing the interests of insurance brokers, intermediaries and their customers.

BIBA represents 1700 insurance brokers and intermediaries. Insurance brokers and intermediaries distribute nearly two-thirds of all UK general insurance. In 2007, insurance brokers and intermediaries generated £1.5 billion of invisible earnings and they introduce £22 billion of premium income into London’s insurance market each year.

BIBA is the voice of the industry, advising members, the regulators, the Government, consumer bodies and other stakeholders on key insurance issues.  BIBA provides unique schemes and facilities, technical advice, guidance on regulation and business support and is helping to raise, and maintain, industry standards. BIBA works closely with the Chartered Insurance Institute to provide training to those working in the industry and actively participates in helping the industry and its customers deal with some of the major issues of the day.

BIBA members provide professional advice to businesses and consumers, playing a key role in identification, measurement, management, control and transfer of risk.  They negotiate appropriate insurance protection tailored to individual needs and operate to a very high standard of customer service with the aim of ensuring peace of mind, security, financial protection and the professional advice required.

To find your nearest BIBA broker visit the ‘Find A Broker' section of the BIBA website, www.biba.org.uk or call BIBA’s consumer helpline on 0870 950 1790