NAILBA Perspectives Virtual Symposium Special Edition | Page 6

CONSUMER SURVEY
Predicted impacts of a recession
In March, the thought
of recession had greater
implications than it appears
to today as fewer consumers
fear its negative impacts.
People whose employment
has been affected by the
pandemic are more likely to
worry about the economy
and the compounding effects
a recession would have on
their finances.
If the U.S. economy enters a recession this year,
how much impact would it have on your …?
“Very Strong Impact” or “Strong Impact”
Discretionary spending
(spending for things that are not necessities)
Ability to save for a major expense
(e.g. college, new car, or home)
Ability to save for retirement
(non-retirees only)
43 % 50 %
41 % 51 %
41 % 50 %
Ability to save in a rainy-day/emergency fund 40 % 50 %
Job security (employed only) 38 % 42 %
Decision when to retire (non-retirees only) 35 % 41 %
Ability to pay day-to-day expenses 31 % 41 %
Ability to meet your insurance needs
(purchase new and/or keep existing coverages)
Ability to maintain your current
housing situation
Sources of income in retirement
(retirees only)
29 % 35 %
29 % 34 %
25 % 35 %
Note: On June 8, 2020, the National Bureau of Economic Research
announced that the U.S. economy entered a recession in February 2020.
May ‘20
March ’20
Predicted impact of a recession on
ability to purchase new insurance
If the U. S. economy enters a recession this year,
how much impact would it have on your ability
to meet your insurance needs
(purchase new and/or keep existing coverages)
13 %
Very
strong
impact
16 %
Strong
impact
23 %
Moderate
impact
29 %
No
impact
19 %
Small
impact
Nearly half of consumers say a recession
could make it difficult to buy new insurance
coverages they need. Which insurance?
May ‘20
Health insurance
Life insurance
Property-Casualty insurance
Disability insurance
March ’20
7 % 8 %
18 % 34 %
16 % 24 %
11 % 19 %
Note: On June 8, 2020, the National Bureau of Economic Research
announced that the U.S. economy entered a recession in February 2020.
Compared to March, consumers are less worried
about their ability to purchase new insurance if
there’s a recession. Fewer express this concern in
May, and name fewer types of insurance products
when they do.
One’s concern about their ability to buy life
insurance if there’s a recession increases by the
degree to which COVID-19 has heightened the
need for the product. The heightened need for life
insurance persists, but the affordability concern
has lessened since March.
6 Perspectives Q3 Special Edition 2020