Insurance boost for older people
Published on 05 April 2012 01:30 PM
Older people might find it easier to obtain insurance thanks to an agreement between insurers and the Government, but the cost is unlikely to fall significantly, it has emerged.
Older applicants will now be automatically referred to an alternative insurance company who can help them if the provider they are dealing with is unable to offer them cover.
The deal was reached by the Government, the Association of British Insurers (ABI) and the British Insurance Brokers' Association (BIBA).
Clare Francis, head of content at comparison website MoneySupermarket, said that policies for older people are not likely to fall in price as the cost of premiums tend to jump once a person reaches the age of 66.
She said: 'We are unlikely to see prices fall significantly on the back of the ABI's announcement but it should have some impact, and I would expect it to become easier for older travellers to find affordable cover and make the most of their retirement.'
She added that older people should not rule out getting cover from insurance companies that do not specialise in policies for people in their age category.
ABI director-general Otto Thoresen said the agreement demonstrated that the industry can work to improve 'transparency'.
Copyright Press Association 2012