Research and Markets: Creditor Metrics: Consumer Approaches to Payment Protection Insurance Linked to Personal Loans and Consumer Credit in Europe

(http://www.researchandmarkets.com/research/0a2c0b/creditor_metrics) has announced the addition of the "Creditor Metrics: Consumer Approaches to Payment Protection Insurance linked to Personal Loans and Consumer Credit in Europe" report to their offering.

Finaccords report titled Creditor Metrics: Consumer Approaches to Payment Protection Insurance linked to Personal Loans and Consumer Credit in Europe, offers detailed and unique insights into the behaviour of consumers in the context of insurance that protects the payments linked to their non-mortgage loans. Based on a primary survey of consumers in France, Germany, Italy, Spain and the UK carried out between June and August 2006, the research provides valuable data describing the extent to which they take out insurance to protect themselves in the event that they are unable to make the payments associated with their personal loan or consumer credit contract. In addition to calculating the percentage of borrowers that buys creditor insurance in conjunction with their personal loans and consumer credit contracts in each country, the investigation also clarifies the types of insurance policy that consumers purchase – insurance designed and marketed specifically for protection of non-mortgage loan payments or other forms of protection policy?

Moreover, it reveals the proportion of non-mortgage loan borrowers covered for each of the four main risks – death, permanent disability, temporary incapacity and unemployment – and verifies where, how and when the consumer acquired the insurance. Finally, the report measures the degree to which borrowers are satisfied with their insurance and for consumers lacking insurance, it investigates why they have chosen to remain uninsured.

Key features of this report include:

a comprehensive overview of the types of insurance used by consumers in each country to protect their personal loan and consumer credit payments: specific payment protection insurance and / or other types of protection product including life insurance and other policies specific to the country in question;

accurate data describing the percentage of borrowers covered in the event of temporary incapacity and / or unemployment in addition to death and / or permanent disability;

robust statistics illustrating the extent to which alternative distribution channels, such as financial advisers and brokers, direct sales by the insurer and affinity channels (for example, car dealers or retailers) are eroding the market share of the entities offering the original loan;

reliable benchmarking of the point in time chosen by consumers with a personal loan or consumer credit contract to take out insurance that protects their payments;

valuable insights into the reasons given by borrowers for not purchasing insurance (for example, because they have not had time, because it is too expensive, because they do not see the benefit).

Key Topics:

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