Insurance industries are understood to be fearful of how cut backs in consumer spending will influence the insurance industry, such as the health insurance sector.

A variety of insurance sectors may face the squeeze, as customers look to save their money as much as they can.

Other insurance policy types beside health insurance may also face lower sales, including payment protection insurance and travel insurance.

There have also been cuts in health insurance too, in Costa Blanca. Expats are facing the dilemma of Spain no longer giving out free healthcare.

International health experts are advising expatriate Britons to take out private medical insurance policies to insure that they are covered.

Some half a million UK expats on the Costa Blanca, the majority of whom are under 50, will now be denied health care.

Health insurance for expats was encouraged in Spain, due to the aim of improving house price investment. However, with house prices falling, the concession has been withdrawn.

Back in England, Matt Perkins believes that customers should not panic, and although many people will want to start reducing their spending, consumers need to “think carefully about which types of insurance they need in a down-turn.”

A short-term saving option might not always be a benefit, because in the long-term if an accident does occur, adequate insurance needs to be maintained.