“Insurance is a layer of security that policyholders can rely on, especially as consumer prices have risen in the face of inflation. It provides the peace of mind knowing that you’re covered if you encounter a significant claim while your personal budget is stretched thin,” says Beth Riczko, Nationwide’s President of P&C Personal Lines. “My advice, if you are looking at insurance as a way to save, talk to an agent. Make sure you understand the implications of policy changes and how that would impact your current finances.”  

Risking detrimental impacts by cutting back insurance  
Some consumers may be taking unnecessary risks by cutting back on insurance coverage. Instead, consumers should explore ways to save money without compromising their coverage, says Riczko. For instance, reducing coverage or limits may result in more significant out-of-pocket expenses in case of an accident or unexpected loss. Additionally, removing a policy entirely could leave a person vulnerable to financial ruin if a significant event occurs. 

The strength of an insurance carrier really matters now 
Despite these actions, consumers are also looking for strength, flexibility, and reliability from their carrier during this period of economic uncertainty. As a result, 71% of consumers have reviewed their current insurance policy or plan to in the next six months.  

“Agents should be engaging with clients to provide counsel to help navigate this challenging economic climate,” said Riczko. “Carriers and agents must be responsible counselors in helping identify possible discounts and the right policy mix to deliver some peace of mind for clients in these times of uncertainty.”  

Survey methodology: 
Nationwide partnered with Edelman Data & Intelligence to conduct a 15-minute online survey among a sample of 2,000 nationally representative adult consumers between March 30 and April 13, 2023. As a member in good standing with The Insights Association as well as ESOMAR Edelman Data and Intelligence conducts all research in accordance with local, national and international laws as well as in line with all Market Research Standards and Guidelines.