Media centre

Age discrimination remains rife in the insurance industry according to new independent research published today by Age Concern and Help the Aged.¹

New evidence reveals half of motor insurers and a third of travel insurers automatically exclude people aged 80 plus seeking quotes‚ irrespective of their health status.  The list of offenders employing discriminatory policies include a number of household names (see table 1 below).

The research shows that while the situation for those at the higher end of the age spectrum is extreme‚ those in other age groups also experience ageism.  Access to insurance becomes increasingly patchy once someone hits 65‚ with some companies refusing to provide insurance quotes to people in the 65-79 age bracket.

The research also shows older people are more vulnerable to paying over the odds for insurance due to the huge range in price of products. While the research shows quotes for travel insurance to Spain vary from £11 to £72 for 60-65 year olds (a £61 spread)‚ this increases to £40 and £413 for people aged 80 plus - a £373 spread. This evidence points to the uncompetitive nature of insurance for older people and a market which clearly isn’t working.
 
Refusing products to older people not only sends a harmful ageist message to people‚ it also places an unacceptable restriction on people’s lives. Problems obtaining insurance cover can mean people are prevented visiting friends and family and enjoying holidays abroad.

This evidence is released on the same day the Government Equalities Office (GEO) publishes its response to a consultation on ‘Ending Age Discrimination in Goods and Public Services’ in relation to the Equality Bill.² It recommends that the insurance industry should be allowed to continue using upper age limits and to refuse quotes – effectively endorsing‚ and possibly increasing the scourge of age discrimination across the industry.

Andrew Harrop‚ Head of Public Policy at Age Concern and Help the Aged said:

“Today’s decision to allow insurers to continue legally discriminating against people on the basis of age is profoundly unjust. It defies belief that in 2010 a business is still able to refuse to deal with someone because of the date on their birth certificate.

“We accept age should sometimes be taken into account in pricing insurance‚ but automatic age limits completely undermine the message the Equality Bill is supposed to be sending. Our fear is that household name insurers will see the new law as a green light to shut their doors to older customers.

“The Equality Bill was meant to end age discrimination and promote a new approach to designing services with our ageing population in mind.  Instead this decision simply confirms people older people as second class consumers.

“The Government must stick to its principles and insist that mainstream insurers serve people of all ages. The insurance industry must wake up to the fact that more of us than ever are living longer‚ healthier and more active lives.  Continuing to discriminate against our ageing population is not only bad for older people‚ it is bad for business.”

The charity is taking further action to make the Equality Bill count and it is asking the public for their support.  For more information go to Age Concern and Help the Aged Just Equal Treatment (JET) campaign at www.helptheaged.org.uk/justequaltreatment

- ENDS -

Table 1

List of insurers who refused to quote for an 84 year old man and 87 year old woman for motor insurance

Notes to Editors

1. Research was carried out by Maritz Research in December 2009. 400 telephone quotes were carried out (200 for motor insurance‚ 2///00 for travel insurance) split evenly between male and female genders for motor insurance and between Spain and USA travel destinations for travel insurance. In each study‚ 50 calls were carried out in 4 age groups (60-64‚ 65-74‚ 75-79 and 80+). People from similar postcoded risk areas were used for motor insurance and scenarios were kept as consistent as possible.
2. The Government’s written statement on the Equality Bill released today‚ including information about financial services can be found at: www.equalities.gov.uk/news/age_consultation.aspx
3. To arrange a broadcast interview‚ please contact the press office on 0208 765 7515
4. To obtain a copy of the full report‚ please email vicky.smith@ace.org.uk
5. The trading activities of Age Concern Enterprises are designed to meet the needs of older people through a range of quality products such as Travel Insurance‚ Home Insurance‚ Car Insurance and Motor Breakdown policies. Age Concern Enterprises Insurance products‚ provided by Fortis‚ have no upper age limits and are all designed especially for customers in later life.  For more information about Age Concern products please go to: www.ageconcern.org.uk/insurance
6. Age UK is the new force combining Age Concern and Help the Aged. We will be known by our new name from Spring 2010. The Age UK family includes Age Scotland‚ Age Cymru and Age NI.

Media contact:
Vicky Smith
Telephone:
0208 765 7515
Out-of-office-hours:
07071 243 243
Email:
media@ace.org.uk