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FSA/PN/027/2007
26 February 2007

New figures published today show that people are savvier when shopping for home gadgets than they are when searching for life insurance to protect their families. During research to devise a checklist of five questions to help people when shopping for insurance, the Financial Services Authority uncovered some other worrying consumer trends.

Over two thirds of people (69%) said they hated shopping for insurance and more than half of those polled (52%) found it too complicated to compare insurance products.

To help consumers cut through the confusion, the FSA's jargon-busting website www.moneymadeclear.fsa.gov.uk has been designed in response to the need for clear, impartial information on money matters. There's no selling. No jargon. Just the facts.

Insurance can offer valuable protection and to help consumers get a head start and ask the right questions of themselves and the insurance market, a checklist of five questions is published today.

• Are you covered already?
  49% of people in our survey said they never quite know what they're covered for.
• Must you buy insurance when it's offered with something else?
  1 in 4 thought it was compulsory to buy travel insurance when buying a holiday from a travel agent. It isn't – you can shop around.
• Have you shopped around?
  52% of people find it too complicated to compare one product against another. And 46% don't know if they are getting a good deal.
• Do you know what will you be covered for?
  In the survey we found that 52% of people rarely, if ever, checked their life insurance policy details to make sure it provides them with adequate cover.
• Have you given your full details?
  52% of people assumed that insurance companies would make it difficult to get a claim settled. However, customers have a responsibility to give their full details because the deal they make with the insurer is based on the information they have provided.

Vernon Everitt, Director of Retail Themes, 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. Our jargon-free information will help empower consumers to do just that."

Providing clear, impartial information to empower consumers is a major part of the FSA's contribution to raising the financial capability of UK citizens.

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Notes for editors

1. The checklist is available to download from our website or you can order copies online.
2. It is also available in an interview format as an audio podcast - you can download it or listen online.
   View survey results [PDF]
3. The survey was conducted by BMRB Omnibus. 1,934 nationally representative adults aged 16+ were interviewed by telephone across two weekends, 2nd – 4th February and 9th – 11th February 2007.
4. Overall, 64% of the sample had personally purchased a household gadget within the last year such as a TV, igital camera, fridge/fridge freezer, washing machine, cooker, hi-fi stereo or dishwasher.
5. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.
6. The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.