People on low incomes are the most vulnerable to financial stress and hardship and the least prepared to respond to cost-of-living pressures and other financially stressful life events. They have the least resources to recover from loss, but are least able to afford the protection and security that can be provided by insurance.
They face significantly lower levels of financial resilience and inclusion, increasing the likelihood that they are under- or non-insured. Financial education, access to financial products, and ensuring financial inclusion policies and practices are adopted by the insurance industry can support financial resilience and encourage the uptake of insurance among people living on low incomes.
In addition, the insurance products available to this group are both unaffordable and inaccessible. The lack of appropriate products, including insurance for individual items or goods, alongside the increasing cost of insurance and the lack of flexibility in payment options, puts this protective mechanism out of reach. Increasing affordability and accessibility can ensure that products are fit for purpose and ensure that people protected against loss.