BNP Paribas Cardif presents results of a survey of 21,000 people in 21 countries

BNP Paribas Cardif Life Insurance, the life insurance subsidiary of BNP Paribas Cardif in Korea, announced that BNP Paribas Cardif released the result of an international opinion survey “Protect & Project oneself”.

The survey, which followed the 2008 and 2019 studies, was conducted on 21,000 people in 21 countries on three continents (Europe, Latin America, and Asia) with the Ipsos opinion research company to assess both the impact of the Covid-19 crisis and personal protection needs. The online survey analyzed changes in behaviours as well as people’s opinion on credit and creditor insurance.

Growing concerns over ‘Health’ and ‘Loss of Income’ due to Covid-19,
Greater need for protection

Prior to Covid-19 crisis, people expressed greater concerns about ‘health’ and ‘loss of income’. Asked about “the degree of concern about the vagaries of their own life or their family’s lives”, 76% of the global respondents said they were worried about ‘health’. The Covid-19 has also significantly increased concerns in possible ‘loss of income’ (76%) in just two years. Women and young respondents in the 18-34 age in particular expressed a higher number of concerns. The pandemic has also revealed and heightened awareness of risks that are not directly related to Covid-19 such as ‘accidents’ (74%), ‘temporary or permanent impairment’ (69%), and ‘inability to work’ (67%).

In Korea, concerns about health and loss of income also increased: A large majority of respondents are worried about accident (78%) and chronic disease (74%), and in particular, concerns over ‘financial loss/loss of income’ (79%), ‘temporary or permanent impairment’ (67%), ‘inability to work’ (63%) and ‘total permanent disability’ (56%) increased significantly compared to 2019 survey results.

There was also a change in the need for personal insurance coverage. Asked “what are the risks for which you would like to feel better protected?” respondents said they would like to feel more protected for ‘serious illness’ (47%), ‘accident’ (41%) and ‘losing a job’ (40%). In Korea, the need for better protection has increased in relation to ‘losing a job(41%)’ and ‘financial loss/loss of income’ (40%) which represent increasing recognition of risk on potential loss of income fuelled by health crisis and desire for better protection against potential risks such as inability to make monthly loan payments.

Growing burden of loan repayment…Gained awareness of creditor insurance

The scope of Covid-19 crisis has not only revealed new threats, it has also had a concrete impact on daily life and people’s ability to make plans. Globally, three quarters of the respondents say they have suffered at least one adverse financial consequence due to the pandemic. 67% have experienced or expect to experience a loss of income, and 55% have had to postpone/cancel a purchase or expect to experience it. 75% of Korean respondents said, which is higher than the world average, they have experienced a loss of income or expect to experience it due to the Covid-19, and 39% said they have postponed/cancelled their purchases or expect to experience it.

As respondents’ loan repayment capabilities have been affected by financial issues, 40% of respondents who have already taken out a loan (77% of entire global respondents) said they encountered difficulties in monthly payments for purchases that they have made on credit, and this figure rose five points compared to the 2019 survey results. 29% of Korean respondents said they encountered difficulties in monthly payments, showing three points increase in two years. Meanwhile, asked “what is the risk that you would not be able to repay a mortgage loan”, both global respondents (65%) and Korean respondents (68%) said ‘losing a job’ will be the most risky situation for them to proceed with loan repayment.

Global respondents’ awareness of creditor insurance has risen. Asked “have you ever heard of insurance products that cover the repayment of a loan in the event of an unexpected life event or accident”, 69% of global respondents said “they’ve heard of it”, and the figure rose six points from the results two years ago. 45% of Korean respondents also said “they knew about creditor insurance”, showing 6 points increase from 2019 survey results, and 11% of them said “they purchased” creditor insurance. When asked about the opinion on creditor insurance, 81% global respondents said they can protect what they own (home, car, savings, etc.). In Korea, 78% of respondents said ‘they can maintain their standard of livings’ and ‘protect what they own (home, car, savings, etc.)’, and 77% of respondents said they can ‘protect their loved ones’ and ‘reassure and provide them with peace of mind’.

Jean-Bertrand Laroche, BNP Paribas Cardif Deputy Chief Executive Officer, International Markets, said “In the space of just two years, the level of concerns has risen very significantly. This unprecedented health crisis has had a major impact on people’s lives, affecting both their standard of living and their ability to plan for the future. As an insurer we have a special responsibility to bring them support so they can continue to move forward with the projects that are important to them”.

Jonathan Oh, the President and CEO of BNP Paribas Cardif Life Insurance, said, “Through the recent international opinion survey, we can have a deeper understanding of the insurance consumers’ growing concerns over health, economic difficulties that they are facing, and greater need for protection after Covid-19. In particular, we were able to reaffirm the strengthened role of creditor insurance as a safeguard for the borrowers in terms of supporting their loan repayment capabilities, and the growth potential of creditor insurance product in the Korean market”.