ILC ARTICLE

SAGIC product bridges insurance premium poverty gap

17th January 2023

SAGIC (Salvation Army General Insurance Company) has teamed up with specialist broker ECH Facilities to introduce a new low-cost home insurance policy for households struggling with the cost-of-living crisis.

For £4 per month, policyholders will get £30,000 of contents cover as well as £10,000 alternative accommodation cover.

Neil Bresler, the broker who designed the policy, said, “The sad truth is that those who need insurance the most are the least likely to be able to obtain it.

“We’ve removed high risk elements like jewellery, valuables and accidental damage as well as fringe benefits, which are the prime factors behind the high cost of cover, but made sure customers are protected against major perils such as fire or burst pipes. Meanwhile, a policyholder can stop paying at any time at no charge and our terms are 100% transparent.”

The product has been launched after a recent report from Bristol University found that around 14 million people are in poverty in the UK, while low-income households across the UK pay an additional £490 per year for essential services, such as insurance.

Neil added, “We estimate that of 22.6m households in the UK, 26%, or six million, have no home contents insurance. What we really need now are distribution partners, and we’re talking to affiliates such as social housing agencies, sheltered accommodation providers, debt management agencies and others to secure distribution.”