Millions of Brits could be cutting back on insurance cover as a bid to keep up with other payments during the current financial downturn, it has been revealed.

During the first few stages of the credit crunch, a large number of policy holders were found to be lying on their insurance applications to save more cash.

However, according to research from finance provider, Sainsbury’s Finance, a majority of cash strapped Brits are now opting out of insurance such as life insurance to fight the recession.

Statistics from the firm found that over 500,000 people have cancelled their life insurance premiums while a further 284,000 have reviewed their life policies as a bid to find a cheaper deal.

Meanwhile, research by DQM Group has suggested that consumer confidence in insurance firms being able to secure personal data has fallen.

Last year, the Financial Services Authority fined Norwich Union Life £1.26 million after it was involved in data protection breaches.

DQM indicated that the plunge in confidence “could have a serious impact on business and contribute to customer defection at a time of low competitive pressure.”

The firm’s managing director, Adrian Gregory, stated that there is an “urgent need to improve standards.”

He added that: “Unless widespread improvement in data security standards takes place in the next few years, across both private and public sectors, then commercial organisations will stand to lose custom, and government will miss efficiency targets, all because the public is increasingly less willing to risk handing over their personal details.”