Insurance industry escapes Equality Bill age limit ban

Financial service providers will be exempt from a new law which bans age discrimination in access to services.

The insurance sector was set to be the main loser within the industry if the ban, part of the Equality Bill: Making it work: Ending age discrimination in services and public functions, included customer treatment in relation to financial products, specifically motor and travel insurance.

However, a policy statement on the Bill published today states providers will still be able to vary prices by age, but only where this is proportionate, genuinely reflects risk or costs, and is not an arbitrary decision.

Providers will also be required to publish aggregate data for customers to check on certain products, and operate a ‘signposting' and referrals system.

It states: ‘Where an insurer does not provide the service to a person because of their age, they will be required to refer the person to a supplier who can meet their needs or refer them to a dedicated signposting service.'

Nick Kirwan, assistant director of health and protection, Association of British Insurers, says: "This is a very good outcome, which we lobbied for. Common sense has prevailed in a win for the insurance industry."

However, the insurance industry is still waiting clarification on the impact of the legislation on other protection products, though Kirwan is confident there will be no read across of the ban.

He says: "Otherwise we will be in the signposting business, not the insurance business."

The Government Equalities Office will consult on a draft Order in autumn this year.

It says: "We will be working with the Equality and Human Rights Commission as it develops detailed supporting guidance. We plan to bring the new law into force in 2012, allowing plenty of time to prepare for implementation of the ban."