Press Release

SURPRISE DEMANDS ADD TO THE BURDEN FOR SIX IN TEN BRITS (21/08/2008)

Almost two thirds of Britons say they have been hit by at least one unwelcome financial surprise in the past three months (63%) and household and utility bills have been the biggest shock of all according to new research from Combined Insurance.

These findings are in keeping with the soaring food costs, council tax charges, childcare rates, fuel and utility bills* that are currently bombarding Brits.  The results from Combined Insurance also reveal a 20 per cent increase from those Brits who experienced the same shock with a rise in bills during the same three month period two years ago in 2006 (43%).

Combined Insurance asked a GB representative sample of over 1,900 respondents what financial surprises they had experienced within the past 3 months and with previous research from the community insurer revealing that people’s outgoings are up by 26%, this is bad news for Britons living on the edge.

Where Brits are feeling the pinch

• During the past three months more than half (53%) of Brits have been shocked by the rise in their house and utility bills.
• 15 per cent of people have had to deal with a hike in mortgage and rental payments having felt the effects of the current housing market.
• Two in seven (14%) Brits have had to loan money in order to support friends and family members.
• One in ten (9%) are facing up to their debts, having not previously realised how much they owed in credit.  
• In the past three months, three per cent of Brits have lost their jobs and two per cent have recently discovered that their partner has been running up bills without their knowledge.

Who has had the biggest financial surprise?

• One in twenty young workers has had to cope with losing their jobs in the last three months (5%).
• Higher income earners (£50,000 pa and over) are almost four times as likely to be hit by an unwelcome tax demand (23%) than those on the average UK salary (6%)**.
• Only a lucky five percent of Brits have welcomed their financial surprise – they experienced windfalls such as winning the lottery (1%), getting a big bonus (2%) and coming into inheritance (2%).
• The Welsh are feeling the effects of the credit crunch the most; seven in ten (70%) have had an unwelcome financial surprise in the past three months, compared to 59 per cent of Londoners.
• One in six (12%) Southerners have been recently shocked to discover how much debt they are in, whereas those in the South West appear to be more on top of their finances, only five per cent were surprised to find out how much they owe in loans and credit cards. 

Nigel Brittle, Director at Combined Insurance commented:
“These findings show how important it is to be prepared, as an increasing number of people become affected by everyday rising costs and are living on the financial edge. Our previous research has revealed that more than a third of Brits have just £500 or less for these very situations. 

“At Combined Insurance, we are helping to make a bad day better, by giving people the opportunity to protect their income or health should an unwelcome financial surprise creep up on them.“

For more information, regional findings or to arrange interviews please contact:

Connie Jackman / Guy Bellamy
FD Consumer Dynamics
020 7269 7190 / 7265
Connie.Jackman@fd.com

Notes to Editors

Research was carried out by YouGov between 21-23 May 2008 among a GB representative sample of 1,983 people. Respondents were asked how what financial surprises they had had to deal with during the past 3 months.

Sources
*BBC online – ‘Food Prices on the rise and rise’, 20th July 2008 http://news.bbc.co.uk/1/hi/uk/6909469.stm
BBC online – ‘Council tax ‘set to rise’ by 4.0%’ 23rd January 2008  http://news.bbc.co.uk/1/hi/uk_politics/7204745.stm
Daycare Trust - Childcare costs survey 2008 http://www.daycaretrust.org.uk/mod/fileman/files/Cost_survey2008.pdf
The Daily Mail – ‘Call for a tax on BP’s £37m a day’, 30th July 2008
BBC online – MP’s warn of energy price impact, Monday 28th July 2008
http://news.bbc.co.uk/1/hi/business/7526048.stm
** £457 is the average weekly salary in April 2007, which accounts to £23,764, http://www.statistics.gov.uk/cci/nugget.asp?id=285

About Combined Insurance
The Combined Insurance website (www.combinedinsurance.co.uk/toptips.html) offers Britons tips and financial advice when it comes to staying afloat during the current economic climate, as well as a financial calculator, so that Brits can see how long they would survive for if they experienced a sudden loss of income.

1. Since 1919, Combined Insurance (www.combinedinsurance.co.uk) has specialised in bringing affordable, quality insurance products to individuals and families - and currently provides supplemental disability, accident, health and life cover to over 3.5 million policyholders. Combined Insurance has never forgotten its roots and today operates face-to-face in local communities – just as it has done for the last 90 years. Combined Insurance is a member of the ACE Group of Companies.

2. About ACE - The ACE Group of Companies is a global leader in insurance and reinsurance serving a diverse group of clients.  Headed by ACE Limited (NYSE: ACE), a component of the Standard & Poor’s 500 stock index, the ACE Group of Companies conducts its business on a worldwide basis with operating subsidiaries in more than 50 countries.  Additional information can be found at www.acelimited.com.