More than 11% of the travel insurance customers canceled their policy over the past 12 months as a cost-saving measure amid the UK’s cost-of-living crisis. Meanwhile, a further 9.0% of the pet insurance customers and 4.8% of the home insurance customers took the same action, according to the GlobalData’s 2022 UK Insurance Consumer Survey*.

Benjamin Hatton, Insurance Analyst at GlobalData, comments: “The squeeze on living standards in the UK is forcing many consumers to alter their spending habits as the cost-of-living crisis continues to bite. Over 41% of consumers who canceled their travel policy did so as a cost-saving measure. The COVID-19 pandemic also continues to affect consumers’ travel plans with 29.0% canceling as they say they are traveling less frequently than before.”

According to the survey, 50% of consumers who canceled their pet insurance policy did so to reduce their costs. A further 10.2% of policyholders are considering canceling their pet insurance policy as inflation drives more and more consumers to take significant cost-saving actions.  

Hatton concludes: “For home insurance cancellations, the most frequently cited reason was again to cut costs, with 44.4% of respondents giving this reason. As home working has remained a significant trend since the onset of the pandemic, some consumers are canceling home insurance policies in response to spending more time at home. 17.9% of respondents who canceled gave this factor as a reason for the decision.”

*GlobalData’s 2022 UK Insurance Consumer Survey (4,018 respondents)