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Irish missing out on potential savings due to lack of understanding

Written by Robert McHugh, on 4th Jun 2015. Posted in General

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Thirty two per cent of people say a lack of confidence in their understanding of ‘financial jargon’ is their primary deterrent from changing insurers. This is according to a survey commissioned by Protection specialists Royal London (Ireland) and conducted by research company IReach on 1,000 Irish consumers nationwide.
 
Furthermore, 31% of all respondents feel they simply do not need to move insurers – but experts at Royal London contend that this logic can too be flawed. 
 
Joe Charles of Royal London said, "Financial products like life cover are serious in nature and as such the reason for buying them, or not, should be well thought out. But the fact that almost 1/3 of people don’t change their insurer due to a lack of understanding is worrying. The act of changing insurers can save people hundreds if not thousands of Euro over the lifetime of a product." 
 
He added, "When we drilled down into the results we saw that younger respondents (aged 18-34) appear to have the poorest understanding of ‘financial jargon”, which is understandable in some ways, as financial issues like this may not currently be on their radar.

In addition, the “time it takes to look around” would put 31% of younger people off. This is also understandable to a degree, with the advent of online shopping this demographic are used to instantaneous transactions. The purchase of life assurance, while not particularly time consuming, would often take a greater degree of understanding and time than say, the purchase of car insurance." 
 
Source: www.businessworld.ie 

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