ABI: Information, not legislation, is best way to help older insurance companies

ABI: Information, not legislation, is best way to help older insurance companies

ABI: Information, not legislation, is best way to help older insurance companies

Today’s announcement of the Government’s intention to publish an Equality Bill, which would include provision to outlaw unjustifiable discrimination based on age, ‘will not affect the differential provision of products or services for older people where this is justified.’ Commenting, Nick Starling, the ABI’s Director of General Insurance and Health, said:

“Insurers agree that unfair discrimination on the basis of age is wrong. That is why they do not practice it. The Government, organisations that represent older people and the insurance industry agree that insurance premiums should reflect the risk presented by individual consumers. We are engaged in discussions with the Government on the proposed Bill, which we hope will endorse this important principle. Legislation, no matter how well-intentioned, could have the unintended negative consequence of forcing some insurers to withdraw certain products altogether, reducing competition and availability and pushing up prices for all age groups.

“Insurance for older people is available from a range of providers. For example, single trip travel insurance is widely available for older people at fair prices. However, we recognise that some people may need more help to find the most appropriate insurance policies for them. We are working to improve this, and we know that the Government and age charities will support our efforts in this area.”

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Notes for Editors

1. Enquiries to:
Jonathan French 020 7216 7392 (Mobile: 07958 330 480)
Malcolm Tarling 020 7216 7410 (Mobile: 07776 147 667)
Erfan Hussain 020 7216 7411 (Mobile: 07712 841 184)
Kelly Ostler-Coyle 020 7216 7415 (Mobile: 07968 364 302)

2. The document published today, Framework for a Fairer Future – The Equality Bill, states on page 16: “The new law.will not affect the differential provision of products or services for older people where this is justified – for example free bus passes for over-60s and priority flu vaccinations for over-60s or group holidays for particular age groups or actuarially justifiable age-based treatment in areas such as financial services.”

3. The ABI is the trade association for Britain’s insurance industry. Its nearly 400 member companies provide over 94% of the insurance business in the UK. It represents insurance companies to the Government, and to the regulatory and other agencies, and is an influential voice on public policy and financial services issues. ABI member companies hold up to a sixth of all investments traded on the London Stock Exchange, on behalf of millions of pensioners and savers.

4. An ISDN line is available for broadcasts.

Copies of all ABI news releases, together with other information from the Association, can be seen on our website http://www.abi.org.uk