DEMOS

While good progress is being made on financial inclusion in the UK, the rising importance but low profile of insurance is in danger of making it the Cinderella financial service.

There has been much progress in recent years to improve financial inclusion and drive greater awareness of the need to improve financial capability within society. However, while the
spotlight has tended to focus on banking and other high profile financial services, there are additional sectors where opportunities exist to innovate and drive reform for the benefit of those consumers who have limited access to financial services. This is an agenda that the Government has supported, but where further progress is much needed.

Insurance is most needed by those who can least afford it. However, people experiencing social exclusion are also least interested in acquiring insurance. To help to resolve this, insurers and others must craft solutions that work with the grain of the habits and skills of socially excluded people.

This report draws together research that aims to contribute practical suggestions in the task of extending access to insurance, particularly focusing on contents insurance, and to generate valuable public debate about this important challenge. The role of intermediaries in with-rent insurance schemes is crucial in ensuring the success of the schemes. While many local authorities and housing associations are working proactively to tackle this challenge, others have not adopted with-rent schemes, therefore the role of central and local Government in pushing this agenda forward is crucial. This report makes a call to action to local intermediaries, insurers and the Government, urging all to invest in extending the coverage of insurance.