Insurance: Age
The question
To ask the Chancellor of the Exchequer, what discussions she has had with (a) the Financial Conduct Authority and (b) the Prudential Regulation Authority on the regulation of age-based insurance premiums.
Answered by Rachel Blake
Insurers make commercial decisions about the terms on which they will offer cover following an assessment of the relevant risks. This is usually informed by the insurer’s claims experience and other industry-wide statistics.
The Equality Act 2010 generally prohibits discrimination based on certain personal characteristics, including age. However, the law accepts that some exceptions, relating to age, apply for insurance. The Act stipulates an insurance provider cannot refuse to cover potential consumers or charge more for insurance as a result of these characteristics, unless they base their risk assessment on relevant information from a reliable source.
The Financial Conduct Authority (FCA) requires that insurance products provide fair value and, where this is not the case, the regulator has robust powers to take action. The Treasury engages regularly with the financial regulators on a wide range of issues, including insurance markets
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