Britons face Christmas with no presents this year - Press Release

Following the news that the unemployment rate is the highest it has been for 14 years*, more and more Britons will need to be frugal this Christmas amidst worry that they will be bringing in the new year with unstable financial futures. It is particularly worrying since previous research carried out by Combined Insurance revealed that Britons have enough savings to last them just twelve days should they unexpectedly find themselves without an income due to illness or injury**.

The leading accident and health insurer asked a GB representative sample of 2,000 people what they would not be able to afford if they, or one of the members of their household, were suddenly without an income. The findings reveal that people are now facing up to the reality of struggling to make ends meet.

Key Findings:

• This year’s Christmas lunch is set to leave families hungry as more than a third of people say that it’s their food budget that they would chop if they were to suffer a loss of income (35%) this year.
  
  

• Nearly half of Britons admit that they could not afford their mortgage or rental payments if they, or one of the members of their household, were suddenly without an income (48%).
  
  

• Following on from reports that the government’s proposed new transport system is going to cost the commuter almost double the equivalent system in Italy***, 14 per cent of Britons say that they could not afford the cost of public transport if they no longer had a steady income.
  
  

• Many Britons may find themselves unable to tune in to the Queen’s speech this year; three in ten people say that they would not be able to afford their television license if they were unemployed (28%) - the alternative being a heavy fine or a jail sentence for watching their televisions illegally.
  
  

• A cold summer ahead - nearly eight in ten Britons say that they plan to forgo their summer holiday next year if they were not able to earn an income (77%).

Nigel Brittle, Director at Combined Insurance commented:

“This Christmas could be a difficult time for many families; some are already feeling the pinch and some face an uncertain new year. Our latest research reveals that people are preparing for the worst and thinking ahead about which of their outgoings they would need to cut first in order to make ends meet, if they were to lose or suffer a reduced income.

“At Combined Insurance, we help to make a bad day better, by giving people the opportunity to protect their two most important assets; their income and their health should an unexpected financial disaster occur, such as loss of income.

“The world has been hit by economic turmoil and with so many Brits living on the edge of their finances, many could find themselves unable to cope unless they take action to protect themselves.”

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

Harriet Powell / Lindsay Wienand
FD Consumer Dynamics
020 3077 0406 / 020 7269 7265
harriet.powell@fd.com / Lindsay.wienand@fd.com

Notes to Editors

Combined Insurance asked a GB representative sample of 2,000 people in December 2008 what they would not be able to afford if either they or someone else in their household was suddenly out of work.

*http://www.statistics.gov.uk/cci/nugget.asp?ID=12

** The days to financial ruin was worked out by dividing the total monthly outgoings (£1,281) by 31 (days in the month) which comes to £41 per day. Since over a third (35%) of Brits have £500 or less in savings, this was then divided by 41 to achieve the amount of days (12.1) they would be able to survive financially. 

*** Metro, Tuesday December 16, 2008
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About Combined Insurance

The Combined Insurance website (www.combinedinsurance.co.uk/finances) 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 Britons 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 still provides a face-to-face service 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.