Under the Age
Agreement, all Association of British Insurers members who do not provide
insurance because they apply age restrictions will be required to ‘signpost’
customers to an alternative appropriate provider offering a non-age specific
The ABI led the
agreement, which also involves the government and the British Insurance Brokers
Association. It will come into force in April 2012.
Unveiling the agreement in a speech at the Age UK
conference today, the director general of the ABI, Otto Thoresen, said: ‘With
an ageing population, it is crucial that we make it easier for older people to
access financial services.
‘This agreement will make it easier for older
customers to access motor and travel insurance. It means all ABI members commit
to signposting and helping older customers find another provider if they cannot
help provide them with coverage. We are committed to making sure that all
people who need insurance find it as easy as possible to get it.’
Mr Thoresen also announced today that the ABI will
aim to increase transparency by publishing aggregated claims data every year.
This move is intended to give consumers confidence that age is relevant to the
assessment of risk for motor and travel insurance.
According to the ABI, the
Age Agreement will reflect the wide range of ways people get insurance. Its
research found that while 41% of drivers in their late 60s would prefer to
use a website, this drops to 25% for those aged 75 and over, with the remaining
75% of over 75s preferring to use the phone.
The ABI will work with its members to find the best
way to communicate with older people, particularly where there are specific
communication needs related to hearing or sight.