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Brokers and insurers to suffer as Brits cut back?

Brokers and insurers to suffer as Brits cut back?

Brokers and insurers to suffer as Brits cut back? The idea of Brits looking to save money on insurance has been thrust upon us since the recession of 2008 – however, with fears growing about the economy once more a new survey suggests an even more difficult battle is under way.

For while brokers may wish to put the emphasis on the quality of the cover they can present to a customer, it seems customers are increasingly only concerned about price – and that means comparison websites are winning the war.

According to the annual Future Thinking Shopper Barometer study, which surveyed more than 2,000 respondents, 48% of Brits used a price comparison website in the last year and one in four have changed car insurance provider in order to save money during the same period. Indeed 21% have even switched their home insurance provider in the last 12 months.

The push to save money on insurance appears to be part of a general cut-back on spending. The same survey found that one in three Brits are pulling back from clothes shopping, eating and drinking in order to put money into savings with 42% concerned about the state of the economy. Cost cutting has led to switching providers in other areas too – with 27% changing energy provider in the last 12 months.

However, the cutbacks will not completely diminish the British public’s enthusiasm for shopping: the research shows that consumers visit shopping centres on average 14 times a year. Nearly a fifth (18%) visit them weekly and just over a quarter (26%) monthly. But the function of shopping centres has changed: 40% of respondents said that they visit shopping centres for the experience, not just for shopping, but to meet friends, eat out and go to places such as the cinema.

Noreen Kinsey at Future Thinking, said: “It’s fair to assume that greater uncertainty triggered by the referendum has shaken spending habits even more, leading people to seek out better deals, cheaper options and more opportunities to save.

“Confidence in the economy is poor, with nearly half of our respondents responding negatively when asked about their feelings towards the economy over the next 12 months. Businesses large and small should take note that the British consumer has become a much more prudent, cautious spender as we enter this post-Brexit world.”

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