The research, carried out by YouGov on behalf of the ABI, surveyed 3,624 adults about the economic climate and their views about its future.
A staggering 92 per cent think that the economic environment is worse now than it was a year ago, while 82 per cent expect the economic environment to worsen over the next 12 months.
The ABI’s director of research and chief economist Rebecca Driver says confidence in the economy is deteriorating rapidly.
According to Driver 61 per cent of people now think the economy is a lot worse than a year ago, compared to 49 per cent in April. Only 5 per cent expect the situation to improve in the next year.
A further 31 per cent of respondents think that they could cope financially with job loss despite 69 per cent saying they would not be willing to take out any protection insurance products in the future.
The ABI’s assistant director of health and protection insurance Nick Kirwan says: “It is worrying that so many people are not prepared to look at taking out protection insurance, even insurance which covers redundancy given the uncertain economic outlook.
“It’s clear that we need to work harder to get the message across about the peace of mind and value that having the right protection insurance gives individuals and families.”