BIBA proposes ‘signpost’ solution for over-65s
Insurers are putting pressure on the government to modify new equality laws so they continue to refuse cover to elderly clients.
Currently, many insurers put upper age limits on motor and travel insurance policies, and charge people double premiums on travel insurance after they turn 66.
The government’s proposed Equality Bill would put an end to this practice, but insurers would prefer to self-legislate, arguing that the government’s proposals are too heavy-handed.
The British Insurance Brokers’ Association (BIBA) told a parliamentary select committee that “affordable cover” is currently available for the over-65s, and that the Equality Bill would penalise insurers by forcing them to cover areas they have never dealt in.
BIBA said a ‘signposting’ solution would be a better option, where customers refused cover are referred to an independent guide listing competitors who are able to help.
“Our solution does not force insurers to cover areas where they have never dealt in and do not understand – particularly when there is no market failure,” BIBA said.
The group blamed price comparison sites as the main culprit for turning away older customers without offering them an alternative solution.
“The result is the customer feels let down and left without insurance protection,” BIBA concluded.
Category: BIBA News, Insurance News
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