20 June 2012 Last updated at 06:05 ET

Insurers must reflect modern life, report says

Many people embark on financial planning while they are still single

Insurers need to be more agile in matching products to people's changing lifestyles, a report has claimed.

Traditional cover has been linked to families and elderly couples, according to the report by price comparison website Confused.com.

This leaves those who remain single, marry later, or who take on financial commitments with friends, short of insurance cover, the report said.

The insurance industry body said companies were "not standing still".

'Unprotected'

Some people see the longevity of friendship as an opportunity to share financial commitments, according to the Confused.com survey.

Some first-time buyers turn to friends to share the cost of buying a home as they face high deposit demands.

In these cases, estate agents urge anyone considering such a move to draw up an exit agreement in advance.

But Confused.com's chief marketing officer, Mike Hoban, said that insurance companies needed to reflect this in the products they offered.

"There may be a whole generation of homeowners who are unprotected against losing the person they share their life and home with," he said.

"There is an opportunity for life insurance companies to reflect the rich diversity of our society and to meet the needs of more people by making available products and services which reflect the value that people put on personal relationships outside of traditional family and marriage ties."

Malcolm Tarling, of the Association of British Insurers, said that the industry was "not standing still" and was developing new products to suit changing lifestyles.

He gave the example of motor insurers who now use in-car technology to customise insurance for young drivers if, for example, they only drive at certain times of day.