Government To Alert The Public On The Need For Life Insurance Cover

27th July, 2009

A nine month report, jointly chaired by The Chancellor (Alistair Darling) and the Chief Executive of Aviva Insurance (Andrew Moss) is due to reveal findings to the Government which indicate the low propensity of the public to save for their retirement and insure against illness or unemployment.

The 65 page report finds that the percentage of the UK population that holding life insurance has decreased significantly - from 61% in 1996 to just 39% in 2006. The Government is due to review the report which not only highlights that the average member of the public is saving too little, but is also faced with the prospect of having to live and work for longer and face more extreme weather. The report is designed to highlight where the Government should be providing resources and planning on our behalf.

One of the worrying suggestions in the report puts forward the idea that insurance companies (such as Aviva) provide for more of peoples' needs - with unemployment, health and life insurance policies - whilst the role of the state is reduced. The idea comes at a time when the Government is faced with mounting debt, a strained National Health Service and increase pressure caused by rising an increased life expectancy.

Life Insurance and Retirement in Education

The report details that consideration should be given to appoint a financial education commissioner "to act as the central co-ordinating body for government; the commissioner should work with the whole financial services industry to improve all aspects of financial education and literacy, including in the context of the national curriculum, and develop a trusted financial education and information service".

A similar scheme was introduced in New Zealand when they established a retirement commission in 1993 to help people prepare financially for retirement through education, information and promotion.

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