old driver
The Association of British Insurers (ABI) has hit out against the proposed Equalities bill that includes new age discrimination legislation. They are concerned that should the proposal be passed it will lead to higher premiums and less choice for all consumers.
The bill would seriously restrict the way that insurers use age in their assessment risk and the ABI warn that in taking travel insurance alone, premiums could easily double. The current system allows age to be taken into account where it is relevant, ensuring a fairer price for all.
The ABI offer as an example the two following examples:
Motor Insurance
The average cost of a claim made by someone aged over 80 is nearly 50% higher than one made by someone aged 60.
Travel Insurance
The average cost of a claim made by someone aged over 65 is nearly three-and-a-half times more than one made by someone under age 50.
ABI director Nick Starling says “Insurers only use age where it is relevant, and restricting their ability to do so would rebound on all customers through higher premiums and less choice.”
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