Friday, April 06, 2012

UK insurance companies forced to disclose demographic cost data

This is the first time I have ever received an e-mail from the Government's Equalities Office and a very interesting e-mail it was. All the details can be read in a press release from the Association of British Insurers but the gist of what has happened is this:

Older customers will find it easier to get motor and travel insurance under an agreement between the ABI, the Government and the British Insurance Brokers’ Association (BIBA). 

Under the agreement, which comes into force on 6 April, if an insurer or insurance broker is unable to offer cover to an older motorist or traveller due to the fact that their age is above any upper age limits they have, then they will automatically refer them to an alternative provider who can meet their needs or to a dedicated signposting service, such as BIBA’s ‘Find a Broker’ service or website. 

All ABI members will adhere to the agreement as a condition of membership and all BIBA brokers will also undertake to comply with this agreement

Most interestingly:

The ABI will publish annual aggregate data showing claims costs under motor and travel insurance broken down by age ranges. BIBA will publish details of the enquiries to the BIBA ‘Find a Broker’ service. 

It will be fascinating to see this data when it is published. All in all, sounds like a very sensible development. Marketers in other industries beware - if you discriminate on age then you might be dragged along the same route as the Insurance Industry. Dick Stroud

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