Press Release

Older People Need Equality In Financial Services

2 March 2009

Reacting to 'Age and Insurance: Helping older customers find the cover they need', a report published by the Association of British Insurers (ABI) on the possible impacts of a total ban on the use of age in insurance but not on the current proposed use of age discrimination legislation on the insurance industry:

Paul Cann, Director of Policy and External Relations for Help the Aged, says:

"The insurance industry still seems frightened of legislation against age discrimination and this report misses the point. Legislation does not propose removing age as a measure of risk entirely, but only where it is used as blanket exclusion. This report argues that legislation would be unnecessary, unfair and restrictive – but it is actually insurers denying older people equal rights that is unnecessary, unfair and restrictive.

"Age alone should not be the basis for an insurance premium or quote. Some people of all ages are a high risk for insurers – but this is because of their health or claims history and not just their age. Insurers are entitled to make commercial decisions, but these should be based on evidence of risk and not the date on a birth certificate.

"Difficulty accessing insurance leaves older people cut off from society - ageist practices in the insurance industry must not be allowed to continue."

Gordon Lishman, Age Concern's Director General, says:

"The insurance industry is riddled with age-related practices causing significant harm to older people.

"For example, many insurers apply upper age limits for motor and travel insurance, leading to older people being cut out of insurance cover. Age thresholds, such as 75 or 80, often lead to unreasonable and disproportionate increases in premiums which don't seem to reflect a real increase in risk.

"These obstacles mean some older people give up travelling to visit family and friends, or taking part in certain activities that most people take for granted. For the sake of true equality, the insurance industry should start looking beyond age to the underlying factors that really affect risk and offer older people fairer deals."