Last weeks announcement of proposed changes to the governments Equalities bill, aim to put an end to age discrimination in the insurance sector while at the same time allowing insurance companies to discriminate in favour of female and ethnic minority groups when employing staff.
The proposals will mean that insurance companies will no longer be able to refuse cover on motor or travel policies on the basis of age. The reforms will also mean that insurers will not be able to hike up the cost of premiums for older people to unreasonable levels.
The Association of British Insurers (ABI) have agreed to the changes in principle, but warn it would be harmful to the industry if poorly implemented.
Nick Starling of ABI believes that the proposals could reduce competition because some insurers may choose to withdraw cover altogether. leading to an increase in premiums for all age groups.
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