If new research from premium finance firm Premium Credit is anything to go by, it looks like there’s been some sort of a domino effect when it comes to Brexit-related stockpiling, cashflows or income, and paying for insurance.
A July poll conducted by Consumer Intelligence on behalf of Premium Credit found that while UK businesses and households stockpiled goods prior to the old Brexit deadline in March, not all of them have been able to sustain the initiative due to the financial impact.
Premium Credit noted: “48% of people in work claim their employers stockpiled goods before the March 31 deadline for the UK to leave the EU, but since then half of these businesses have started to run down their stockpiled goods, and only 25% said they had maintained their stockpile levels. This is partly explained by the fact that 77% of them said their company cashflow had been negatively affected by their stockpiling – one in four (25%) said it had had a ‘very negative impact’.
“In terms of households stockpiling, the findings show one in five adults had stockpiled goods before the March 31 deadline, but 27% said they have now used all of these up, with a further 51% saying they have used up some of these goods.”
Now Premium Credit is of the view that spending on stockpiling and its effect on the flow of funds, in turn, pushed consumers to make adjustments elsewhere including in the area of insurance payments.
“The level of stockpiling by British businesses and households is well documented, but there has been little focus on the impact this has had on cashflow, which has been quite negative,” stated strategy and marketing director Adam Morghem. “This is no doubt forcing many of those who have stockpiled to start using these goods.
“Interestingly, over the past three months we have seen an increase in clients looking to use premium finance to pay for their insurance, and we believe a key factor behind this is the impact of stockpiling on cashflows forcing more businesses and households to spread the cost of their insurance.”
Meanwhile, Morghem added that businesses should check with their brokers that their stockpiled goods are properly insured.