Demand for unemployment insurance up

Monday, 22 September 2008 03:00

The financial crisis has led to a surge in demand for unemployment insurance protection policies, an insurer has found.

Insurer Paymentcare.co.uk said last week, when finance dominated the headlines, the volume of calls shot up by nearly 50 per cent.

"We are being bombarded with enquiries from all sectors, and the common theme is that people are finding the cover offered by high street lenders exorbitantly expensive.

"A growing number of applicants are telling us that they've always thought PPI to be a good thing but simply can't afford the prices the high street lenders want to charge.

"On top of that, more people seem to be aware of the ongoing competition enquiry into PPI, a sure sign that consumers are becoming ever more savvy when it comes to their personal finances," said Paymentcare.co.uk managing director Shane Craig.

According to figures from the Office for National Statistics (ONS), total unemployment currently stands at 1.724 million, the highest in nearly a decade.

Airlines, building companies and the financial sector have all been announcing job cuts or bankruptcies over the last few months, raising fears unemployment is set to go even higher.

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