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Alan Smith
Member - 2 posts
One question I have on this subject that I havent seen or heard a definitive reponse to is this;
Travel insurance : will this bill stop companies from being able to charge basically what they want to the over 70's or 75's ?
I find it annoying that when I am booking a holiday for an older relative, 70+, that 'special conditions apply' and that the cover costs more than double than that of someone who could be only a few months younger (ie less than 70)
Thanks in advance
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Simon Hickman
Member - 4 posts
Try turning it on its head: Why not charge all other people under that age the same premiums as those over 70 or 75 and call it equality?
The whole principle of insurance is that each risk category pays an equitable premium into a pool from which claims are paid. The Underwriters calculate the rate based on the loss experience but this could all be compromised with the proposed bill. If this happens all lower risk categories will find themselves paying more to subsidise the riskier categories.
In motor insurance, the most risky, young male drivers will pay much less, but everyone else will have to pay more to cover their claims.
As an insurance industry professional I am not keen on the time proven statistically based principle of risk evaluation, assessment and pricing being thrown out of the window.
This is the Industry response: taken from Insurance Times
"However the government has said that insurers and other service providers will still be able to discriminate on the grounds of age and gender where there is a justification to do so – for example, actuarial evidence.
But the proposed measures could still affect the pricing and availability of insurance products, particularly motor and travel.
Biba welcomed the proposals but warned of the possible implications for discounted premiums targeted at specific age groups.
The government stated its intention to “make sure we only outlaw unjustified discrimination without unintentionally stopping things that are beneficial to particular age groups” in its publication Framework for a Fairer Future – the Equality Bill."
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Gary Townley
Member - 6 posts
I suggest you contact your local Age Concern office, as they offer special terms for this age range.
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