Insurance industry to signpost services for older customers
A new initiative by the insurance industry and the UK government should make it easier for older customers to find motor and travel insurance.
The Association of British Insurers (ABI) has entered into an agreement with the UK Government and the British Insurance Brokers’ Association (BIBA), requiring insurers and brokers to refer clients to another provider if they are unable to offer car or travel insurance because of age limits on their policies.
Alternatively older clients may be referred to a signposting service, such as BIBA’s ‘Find a Broker’ service.
BIBA will publish details of enquiries to the service, and the ABI will publish data on the cost of motor and travel insurance, categorised according to age.
The agreement covers ABI and BIBA members, but companies that are not members of the organisations are not forced to comply with the new rule.
Otto Thoresen, director general at the ABI, said: “The insurance industry wants to ensure that older people get the best possible insurance deal, by having as wide access to the motor and travel insurance markets as possible.
“This agreement shows how the industry can work with Government to increase access to insurance, improve transparency, while preserving insurers’ ability to assess and price risk fairly.”
Earlier this week LV= announced the removal of the upper age on its motor insurance policies.
LV= formerly refused to insure drivers over the age of 86 years, unless they were existing customers.
John O’Roarke, managing director of LV= car insurance, said: “We were one of the first insurers to remove the upper age limit on our travel insurance policies and now we are extending this to our car insurance customers.
“People are living longer and driving until much later in life and now they have peace of mind that they can continue to find cover with us.”